All Forum Posts by: Stephen Kunen

For the investors in Allentown, PA, I would greatly appreciate if you can help me with this deal that I am analyzing. I have used the BiggerPockets BRRRR analysis tool, but not sure if I have used the correct assumptions.

Property:  1241 W CHew, Allentown City PA, 18102 (2-unit house)

- listed for $73k

- Offer: $40k

- Closing cost: $9k

- Repairs: $16k

- ARV: $90k

- Rent: $1,800 a month

- Vacancy, Maintenance, CapEx: 10% each

- Water and Sewer: $100 a month

- Insurance: $100 a month

- Property management: $180 a month

- Property tax: $261 a month

This leaves me $232 cash flow per month if I refinance it at $90k at 5% interest rate. There are a lot of assumptions going in there. I relied mostly on comparable recently sold houses and rents from Zillow. For the repair costs, I relied on the pictures of the posting. Now $40k offer price may be too low and won't be accepted, but I used the formula ARV * 65% - Repair cost to determine the MAO.

Again, greatly appreciate your thoughts!

@Jonathan Emery Thanks! We will try to contact them.

@Dave Lin Thank you! Good luck!

@Chris Engler Thank you! We are looking for single families and small multi-families. Does Essa have a restriction on how long you have to wait before you refinance? Also, what' the LTV ratio?

Hi all, we are looking into doing BRRRR in Lehigh Valley area (mostly likely Easton), and one piece of advice we got is that we should line up a local bank before going into projects. We heard that a credit union or community bank is more likely to work with investors as they are more flexible. We are wondering if you had any recommendations? Thank you in advance!

Hi @David Ribardo, welcome to the area! We are also looking to partner with people to invest in the Lehigh Valley area. Lets keep in touch. Good luck with the house search! There are a decent amount of multi-families in the area, have you considered doing a live-in flip? 

@April Crossley Thank you. That's exactly the area we are looking at (Northern PA). My gut feeling just told me not to touch those "too-good-to-be-true" returns.

@Brian Adams Agreed. Took a look at your website. Seems very interesting. Maybe we can work together in the future. :)

@Malachi Lindsey Thanks for following! 

 We are looking at deals in the declining area with very good cash flow. By declining I mean the population has been going down for the last couple of decades. Do you think it's a good idea to invest in this kind of area? Our concern is that even if it cash flows now we might have difficulty renting it out because the population is declining. Thank you!

Hey Folks,
My wife and I are expanding our investing into PA (we have 4 single families out of our state now) and are on a mission to meet folks who are flippers in the Lehigh Valley area working on single family or small multi-families in B to B- areas who could use some additional funding on deals where the ARV is around 100K, and who could use some extra help on the admin side. We are particularly interested in the buy, rehab, rent, refinance, repeat (BRRRR) plays and are looking to work this for the long term, especially after listening to the latest podcasts by Ian Reeves.

My wife and I have professional white collar jobs, I'm very good on the legal (have a JD), negotiating, and contracting side, where she is strong on the finance, accounting, and organization side, and have most of our time on nights and weekends but are flexible. Where we need the help is on the ground actually doing the work to fix up the places in an efficient and cost effective manner to work the flip aspects. If you are interested or come across some folks who are looking for people like us or know of some events that we ought to attend, we're happy to connect or make an effort to be there, or feel free to private message me.

Thanks!

Steve K