First Deal NOO Closed, Now What?York, PA
I just closed on my first NOO single family York, PA. I am planning to do some of the work to get the place painted and repaired (approx $4-5K). I paid $22K and it is worth $45-$50K after rehab. I put 10% down with a well known mortgage company for 15 year payment terms. The appraised value currently is $39K, before rehab. I'm just trying to find the best route to go to get cash for repairs. I have a credit rating of 675 average, which I believe to be fine. I do own my home (well the bank owns it) with some equity. I want to rent the house to section 8. Meanwhile, repairing this house and obtaining funds to purchase another NOO. I do have a total knowledge of rehabbing and I plan to do most of the work myself. Although I am already in the mix I do have one thing to add and that is I am living abroad in Puerto Rico working with the federal government. I will hire a property mgmt co to look after the properties. I told you most of what I am dealing with please give me your criticism...Also more info to help me better help me make an assesment. Thanks beforehand...
[addsig]
good luck w/Section 8. I've been trying to get ahold of a case worker for one week and she just won't return calls. the only person in that office that will do anything (and she can't do much) is the receptionist. my prospective tenant and I are going in together Monday a.m. and basically going to sit in a chair until someone talks to us. my tenant already is in the program & has her approval (Moving Voucher, I think it's called) to move.
How many houses do you own? And what is your epinion about the current market in York, Pa. I am buying houses in that area so I want to know your feelings or experiences there...thanx...
I presently own 2 single family investment properties (one in the city & one in SpringGarden Twp) and have 2 city multi-units in the works.
I'm new to this so I don't know what I would be able to tell you other than as I am sure you know, the city itself is in dire financial straits and the taxes and sewer/refuse bills are tremendous. Many areas are just outright nasty and other areas have beautiful homes, although I think those are quite overpriced.
I've found what I always suspected, the best deals are made by knowing someone and not by what gets listed. As far as I can tell, there is no local REI group to network with.
If you have any specific questions, I can TRY to help you.
I have found that York, PA and the surrounding area is currently a sellers market. The deals are hard to find and you need to dig real hard. As Sue stated alot of other investors don't really like to talk much (no rei clubs)about how they are making their money. The competition is tough.
HI fellow Yorkers! FYI there is a REAL ESTATE INVESTERS OF YORK INC. CLUB it meets every other month, at Sam & Tony's Celebration room on W. Market St Call Dawn Sterner at 717-747-0347 for info on how to join. York has over 700 houses that the city owns, off the tax roll, But doesn't know what to do with them, the club has tried to find how to buy or what ever ???? NOT much luck!! Most in the club seem to be landlords only.
I appreciate the help and info on the investors club although I currently reside in Puerto Rico it's great info. I also am looking for someone info on buying a used or rebuilt furnace (gas) with forced air that I need to replace in the York area. It's for an old home that still has the radiant heater in the dining room floor. Please respond with info...Thanx again...
Thanks REYPALMER!!!
I see that this club evolved from the former Landlord ASSOc. I did e-mail Charlotte once but she never replied - looks like this is why.
while most of us never truly know what 'they' are doing, I think the problem with the city properties is they hold them until they get enough federal money to rehab them so they can place HOMEOWNERS in them. that's what's going on over on Thomas Street. the city bought the whole block, Habitat for Humanity is redoing I believe 8 houses and the Housing Authority is doing 2. To get one of these homes, I forget the formula but I think you must earn below 1/2 the median income for the county.
I'm fairly new to rehabbing/flipping properties, and what I can't understand is how people get so much instant equity. How do you buy a property that appraises for $39K for only $22K?....and if you would already have that much equity why bother taking the time to fix up if you are only going to make a couple thousand for all that work? Please tell me what I am missing here. Thanks!
People don't want to move into house that need 5,000 bucks just to get them looking nice. They probably had a hard time selling or just didn't want to wait.
Well this particular home that I purchased was a REO and it needs some cosmetics that is in a decent stable family area. I want to do the work just to learn about the business from the ground up, and I can do all of the work myself. Also I am toying with the idea of renting for a year or so. The neighborhood comps are anywhere from $45K -$55K so my thinking is if I spend $$3K-$4K I can increase my potential and if the market is slow I can just use it as a rental. That's my thinking...The house will need a furnace to make it competable in the sales market. So if I do that why not do the rest...COMMENTS...CRITICISM...ADVICE all welcome.