Upper Darby, PA · Member since 2013 · 146 posts · 7 votes
As a new member who has a ton of questions, I want to ask a new question everyday to get some feedback from real folks. I'm reading a ton of material but I feel like the BP community could offer significant insight to some of what I'm reading. So here's my first question:
If you had to start over again and choose your first investment property would it be a single family home or multifamily home and why?
Santa Monica, CA · Member since 2013 · 34 posts · 23 votes
12y
I agree with @Brandon Turner first statement tho be careful living on the same property as your tenants. Often times it is good to have some sort of separation between you and them. Living on the same property as them alllows them show up on your doorstep anytime they want. You could always hire property management and the tenants will never even know you own the property.
Philadelphia, PA · Member since 2013 · 21 posts · 1 vote
12y
@Elisha Keller I am thinking the same things now.. I have found several duplex properties with tenants. I am going for the buy and hold technique for the time being. What area are you looking into? are you using a realtor? found your niche?
@Brandon Turner I agree.. 2-4 MFH, FHA financing, property below MV with no structural damage.. How does that sound to you?
I'm looking in the Delaware County area (right outside of Philadelphia). My niche is definitely multifamily buy and hold. I'm not using a realtor right now because I'm still 3-6 months out from purchasing.
Philadelphia, PA · Member since 2013 · 21 posts · 1 vote
12y
@Elisha Keller hey we are in the same boat.. There are alot of duplex properties in Collingdale/Upper Darby/Darby area. I am about 3-6 months out on my initial purchase too.. I was working with an investor, presented him with several flip properties that would net $30/60K profit after rehab and expenses, he never bit anything. After that experience I was turned off to investors. I want to live rent free while my mortgage is being paid and my property gains value.. The American dream right!!
I've mostly talked to a friend (who is a real estate agent/investor) in Philadelphia. He's guiding me through the process a little bit but most of what I'm doing is reading A LOT! I figured while I'm saving I should read/learn as much as possible.
I'm also looking at all multifamily homes on Trulia in our area. There aren't like 100's but there are a good 20 that I found. I'm actually really looking at the homes online and figuring out how many units, what's included, neighborhood, schools, etc. That way when I jump into really buying the property I'm familiar with the market.
Real Estate Agent · Philadelphia, PA · Member since 2013 · 150 posts · 59 votes
12y
Hey,
@Elisha Keller And @Andre Buckner . Great to have others in the same situation. I've done deals before and I'm an agent so I'm really cheating but i plan to do a buy and hold by myself in the 6-7 months time. I'll be on the look out for your progress. Cheers.
Philadelphia, PA · Member since 2013 · 21 posts · 1 vote
12y
I dont think me or @Elisha Keller have completed deals yet. We are both still in the research and development stages. @Ugochukwu Opara how important and useful has it been to your business to have your real estate license?
@Brandon Turner The beginners guide and podcast are very insightful and helpful!
Real Estate Agent · Philadelphia, PA · Member since 2013 · 150 posts · 59 votes
12y
@Andre Buckner I love it! Its very much an expense but you make it all back after your first deal over $50,000. Access to trend, access to property whenever, and you can make a buck for helping other do what you play to do in the near future. I think its pretty advantagous but not a must
Santa Monica, CA · Member since 2013 · 34 posts · 23 votes
12y
I agree with @Brandon Turner first statement tho be careful living on the same property as your tenants. Often times it is good to have some sort of separation between you and them. Living on the same property as them alllows them show up on your doorstep anytime they want. You could always hire property management and the tenants will never even know you own the property.
Philadelphia, PA · Member since 2013 · 14 posts · 0 votes
12y
I bought my first property which was a single family home with intentions of renting it out down the line. Although I've been living there as my primary residence, I wish I had opted for a multi-family property instead. I def think that that's a better investment in the long run because like others have said, you can get your mortgage paid for!
Philadelphia, PA · Member since 2013 · 21 posts · 1 vote
12y
@Ugochukwu Opara my initial plan was to become a real estate salesperson.. I think I will stick to that goal and gain market knowledge from the inside perspective then buy MFH. Is there reciprocity between PA and NJ?
@Tyler Kimmel thats a a cause for discussion. I understand property management's job and what it is they do but, for a 2-4 MFH and my first investment I don't know if I want to use them. Maybe just not disclose the fact that I am the owner. IDK yet but, I know that once I begin to add more doors to my business I will def work with a property management firm.
@Brandi Brockman that is my thinking exactly. I want the decrease in mortgage and the increase in value for free! Without any in depth details what part of the city did you purchase in and have you seen your value increase?
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
12y
@Tyler Kimmel - I'm a huge fan of that. Although I didn't do it when I lived in my duplex, I wish I had. There's no reason for them to know you are anything but another tenant. It will save a lot of hassle.
Santa Monica, CA · Member since 2013 · 34 posts · 23 votes
12y
@Andre Buckner Agreed. 2-4 units "should" be easy to manage. All depends on the tenants you choose. Just once you cross that line with them of knowing you own the property there is no going back. You could always say you are the property manager and you work for the owner. This could create a little separation.
Philadelphia, PA · Member since 2013 · 14 posts · 0 votes
12y
@AndreBuckner I purchased my home along city line ave. The property values vary depending on a lot of variables , mine has pretty much held its value. The good thing is that I'm located near PCOM and St. Joes, so I'm definitely in a great area to rent it out for enough to cover my mortgage in the future.
How important is the 2% rule for a duplex? Everything I find is a struggle to meet 1% with the exception of some really low end properties.
It depends on what you can get in your area. Are SFH getting 2% or are they at about the same range? Not all areas can achieve the same type of cash flow.
Philadelphia, PA · Member since 2013 · 21 posts · 1 vote
12y
@Darren Sager Thanks. I know a couple of realtors in NY. None with your experience. How has the real estate grind been to you over the years? I mean of course it's a ride.
@Tyler Kimmel I plan to use my contractor/handyman cousin as an intermediary. I will play the "just another tenant" role.
@Brandon Turner for a person with one duplex property at the start of their career do you think property management is a plus or a minus?
@Brandi Brockman Cool. I grew up in that area. Are you sure you can rent your property? I know the Wynnfield Homeowners Association was trying to put a stop to that. Something about the college students tearing up properties and that effecting the neighborhood.
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
12y
Hey @Andre Buckner - I think you should budget for a property manager, but should probably not use them. I think it's good, at least for a short time, to learn how to be a landlord.
Philadelphia, PA · Member since 2013 · 14 posts · 0 votes
12y
@Andre Buckner I know my neighbors down the street just rented out their house a few months ago. My area is mix of renters and homeowners (most which have been in the area for a long time). That's something I'll definitely look into.
I know this may sound like a strange question, but is it illegal to lie to your tenants? I understand where you guys are coming from as far as creating a boundary; however, isn't that giving people misinformation? I'm not sure if I would want to set up a relationship where I'm dishonest with my tenants.