All Forum Posts by: Stephen Kunen

Brian, I have similar comment as the other people. I usually budget for 10% vacancy, 10% property management, 10% capex. I think you should still have positive cash flow after these expenses based on you numbers.

Hi Mike, I am looking into Lehigh Valley too. It's been pretty hot lately. Made multiple offers but none got accepted due to other better offers. But I'm still very optimistic about the area. It seems to be on the rise. Good luck investing!

You may have concerns about transfer pricing issues too. Although your transaction amount may not meet the threshold to be subject to transfer pricing documentation requirements. Basically there are requirements under internal revenue code 1.482, that multinational corporations have to demonstrate the dealings are at arms length. In other words, you have to demonstrate that the US subsidiary is compensated at arms length as if it were a third party, so that you pay appropriate amount of tax in the US. My wife is a transfer pricing precessional at one of the big four accounting firms, that's why I know about this...hopefully your legal / accounting advisors can advise you on this as well.

Thanks Joe!

Hello all, just wondering what the vacancy rate is in the Lehigh Valley (Easton, Bethlehem and Allentown) area, especially for multi-family houses. I heard some pockets can have over 20% vacancy rate, which is kind of scary. Thanks all!

So far not yet. Still looking and waiting for the winter. Hopefully the competition will be less then.

Welcome Julian! BP is great. We have similar goals and BP has been helping us along the way.

Hello everyone! We are looking for a local bank that serves Hobart Indiana and does cash out financing so that we can get 80% of the ARV out. Any recommendations? Thank you very much!

We are looking for contractors and handymen (or handy-women) who work in the Lehigh Valley area in PA (Easton, Bethlehem, Allentown). We recently put an offer on an SFR which needs mostly just flooring, paint, and bathrooms done. The other houses we are looking at also just generally need cosmetic repair. We will be making other offers if this one does not get accepted. Our goal is to get our first BRRRR deal done by the end of this year. So most likely we will need your help in the fall / winter. PM me if you have time / interest to help. Thank you!

@Marcus Fleckenstein Thanks! I used the BRRRR calculator, so the holding cost was taken into account. Good advice on making the offer!

@David Ribardo Thanks. I did not have contractors lined up yet. We have been going to various meetups but so far haven't met any contractors. I plan to make another post asking for contractors, and start looking on Angie's list.