All Forum Posts by: Stephen Barnabei

Does anyone know any credit unions or small local banks that will do a HELOC on a owner occupied triplex in PA(Philly suburbs)? I just called NFCU and they won't on any property larger than a duplex.

How can you tap into a homes equity without showing much income verification?

I have a family member who purchased a SFH home cash for $35k. I helped them fix it up, not too nice but it's livable. They live on SSI which I think is only $800/month.

The comps selling in the area are going for $150k-$175k. I’d said their house is worth between $125k-$150k.

They took out a home equity loan several years ago for $40k and currently owed $32k on the loan.

I want them get a HELOC for $100k or whatever they will approve. Use that to pay off the $32k loan and put a nice down payment on a multi family building (duplex or triplex) so they can house hack. I will help them manage it and they can rent out the original sfh. Any ideas or suggestions would be appreciated.

@Brittney Cain I own a triplex in PA but I’m not sure if it’s legal or not to ban 1 or all quests. I would imagine you can ban specific people whom you have received complaints. Most will say refer to the lease.

My triplex has 4 spots for in the parking lot. 2 tenants pay to use 2 spots and the other tenants choose to park on the street. It states in my lease that all quests park on the street.

It’s a tight driveway to the parking lot and I don’t need any quests accidentally hitting the property or another car in the lot, etc.

@Alex Smith on average it will be about 10k for a new service line, 200 amp panel with whole rewire, plus patching. See if you can get the property discounted with this new information so it doesn’t kill your budget. The owner likely knows this and is selling the property as is where is?

@Alex Smith I wouldn’t buy it unless a rewire is in the budget. Most Insurnace companies won’t give you coverage with knob and tube wiring. Most of the time the wiring is okay if it’s in visibly decent condition and undisturbed, it becomes dangerous when it’s covered with insulation in attics and walls and it can’t breath causing it to overheat. You’re also putting your tenants at risk because it’s a good chance they’ll plug anything into the outlet such a AC units or space heaters in the winter and risk overheating those wire which aren’t grounded so they won’t trip the breaker. I just purchased a triplex with k&t and rewired the whole building which was already in my budget.

@Whitney Breedlove it depends on the square footage of your roof, pitch, how many layers and if any decking needs to be replaced. A roofing “square” is a 10’x10’ section or 100 sf, the average size roof is 25 squares for a sfh. The average roofing costs is $350 sq. Some places are lower and some are higher but that’s the average cost. That includes removing one layer down to the wood sheathing, installing ice/shield on eves and valleys, new drip edge and synthetic paper, ridge vent, 40 year dimensional asphalt shingle and new flashings on walls and chimneys and should include a 20 year workmanship warranty, that’s what I offer. If there’s bad wood you’d be looking at $70/per sheet replaced. The price per square is higher is roof is steep, there’s a lot of valleys and cut work and/or there’s multiple layers. I just started charging $400/square recebtly. So to estimate $400x25 squares= $10k on average for your roof.

In Pennsylvania, the most we get for a deposit by law is 33% after the contract is signed. DependIng on the sIze of the job (example 4 weeks), I like to have a payment schedule such as 30% down payment, 30% end of 1st week, 30% end of 2nd week, last 10% on completion.

It depends on what the lease states. Does it say it automatically turns m2m after expiration date, is there a box checked that says the lease is terminated on that date unless extended in writing? Either way you can give the 30 day notice of non renewal 30+days before their end date. You don’t have to wait until the lease expires to give notice. Also there should be some verbiage on what happens to the lease if the property is sold, look over the lease again in its entirety.

Tell them to do their on research on comps and after they see what it will cost to move they will be begging you to only raise the rent to $1950. 

It won’t have the said effect if you waste your time putting comps together for them. 

They were qualified together so they both should stay on the lease, I would not remove anyone. If the one tenant moved out already and the rent is late already, send your proper notice and file for eviction or give them the option to terminate the lease early and move. You can find a more qualified tenant and they can keep the eviction off their record this way.