All Forum Posts by: Stephen Franco

I had and have a similar strategy, you said I make the purchase is a market where I finished multi rental unit cost 30000 NFL - single cost maybe 40 or 50.

Rent or lease option that home for 600 or $900 a month, refinance it for virtually everything you have into it, and repeat

Pittston PA, I work in many parts of PA New York New Jersey and Florida. Primarily centered around the high cap rate markets of northeastern Pennsylvania for rentals and small-scale flips.

I actually helped out of area investors with turnkey rentals in my home market of Scranton PA, so I can answer any questions on how to turn keys work for you, as they may  more or less work same way nationwide.

I continue to advocate for the markets of northeastern Pennsylvania Scranton wilkes-barre Hazleton and to a smaller extent Allentown and Bethlehem Easton. These markets are good for cheap clips, very good for rent to own and still very strong for single family rentals. In many cases the people in the market can't get there on loan, but they want a single family home, and they're willing to pay a premium to get a single family homes to their lifestyle even if they can never actually on it.

cash flow is king.

Cap rate is an indicator.

I do this;

Rent (say 600)

- 30% maint. Vacancy. Management

- costs landlord pays (taxes...sewer..etc)

-75 a month pocket cash flow

The rest goes to mortgage at 6.5% 20 yr .

Runs about 30k per finished tenant rented unit.

Luzerne county pa wins for that

i live and work in northeastern pa and do a lot of projects with out of area investors . sometimes JV

15% rental caps or higher are common 

good to meet you :-) I work out of Luzerne / Lackawanna County and would love to network with you. We have similar returns out here percentage-wise taxes are substantially lower. Typical hundred thousand dollar house might have a 2 or $3,000 tax base mind has about a $1,500 tax base

@Fiora P.I invest in the area of northeastern Pennsylvania, luzerne and lackawanna counties...not usually in the city of Scranton. 

It's not a rough area at all, in fact this market has crime so minor it would seem not worthy of mentioning in any normal major market. 

I invest outside the city more because I enjoy the way the townships handle codes and other things and anything to do with the city itself. 

Regardless, whether you invest in the city or outside of it you get much better returns up in this market than in other markets elsewhere.  At much lower risk

 That's basically my general point. I love to talk with you more, please give me a call PM

I did one flip in the more expensive market,  and discovered the percentage return is the same,  the cash on cash return is higher... 

However when that flip went bad  we lost a lot more a lot quickly because  everything was at risk in one property. 

In a larger market, you're forced to take  a hard money loan or something, which means if it takes longer to sell you lose money quite quickly 

Show me, I will stick to the 20,000 purchase 20 of 30000 rehab 80 to 100k sale deals here that work.  And, this market if something doesn't work I have to fall back plans primary is rent to own and secondary is straight rental and all three plans the property cash flows

50k is enough to do, a nice solid flip in my market of  northeastern Pennsylvania.  

Itwould probably net you off an average sale 20 25% return on your money if splitting it 50% with somebody else.