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David Chen
  • New to Real Estate
  • Philadelphia, PA
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Am I on the right track?

David Chen
  • New to Real Estate
  • Philadelphia, PA
Posted Oct 24 2022, 12:53

Hey everyone! 

I'm back after lurking around the forums and listening to the podcasts.

I saved up some money (around $70k) and finally deciding to buy my first rental property. I'm looking into single family homes and small multi-family homes (duplex or triplex). I have a real estate agent (same one I used to buy my own home) and she gave me a couple properties. Single family homes are ranging 230-250k and duplex are ranging 250-450k. I am looking around Temple University right now - plan to rent out to college/graduate students. 

Besides my agent, should I also look for a local property management company and local contractors right now? If so, does anyone have any recommendations?

Thanks for reading this! It's good to be back!

-David Chen

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Ash Hegde
  • Lender
  • Fort Lauderdale, FL (Lending in FL CT MI PA)
300
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423
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Ash Hegde
  • Lender
  • Fort Lauderdale, FL (Lending in FL CT MI PA)
Replied Oct 24 2022, 13:03

I do think it's a good idea to look into those to build your team even if you don't immediately need them. Not sure if you have asked your agent already, but if they deal with investment properties they may have those type of contacts. 

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Joseph Cacciapaglia
  • Real Estate Agent
  • San Antonio, TX
1,711
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1,190
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Joseph Cacciapaglia
  • Real Estate Agent
  • San Antonio, TX
Replied Oct 24 2022, 13:23

It's very unlikely that the agent that sold you your home is going to be the best agent to help you with an investment property. I know there are some great niche shops in Philadelphia, or at least there were when I worked there several years ago. I'd recommend finding one that sells a lot of investment properties in town. They should have MGMT, lender, and contractor contacts to share.

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Nate Sanow
Pro Member
  • I​nvestor & Agent
  • Tulsa, OK
1,156
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Nate Sanow
Pro Member
  • I​nvestor & Agent
  • Tulsa, OK
Replied Oct 24 2022, 15:40

Welcome to the party that is investing! Best wishes to your success 

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Drew Sygit#2 Managing Your Property Contributor
  • Property Manager
  • Royal Oak, MI
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Drew Sygit#2 Managing Your Property Contributor
  • Property Manager
  • Royal Oak, MI
Replied Oct 25 2022, 04:12

@David Chen we agree with @Joseph Cacciapaglia that an agent that sells houses retial is unlikely to understand and be able to find an investment property. 

Find a good PMC and they can either find you a property or connect you with an agent better suited for an investor.

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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
37,103
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied Oct 25 2022, 05:10
Quote from @David Chen:

A lot of people will tell you to save the 10% and manage yourself, but that's because they don't understand the value a good Property Manager provides. You can do it, but make an educated decision.

A good PM knows the market and can keep rents at market rates. They can reduce vacancy by marketing properly. They can reduce turnover by keeping tenants happy with quality services, clear communication, and responsive maintenance. If a problem pops up, they have policies and procedures in place to nip it in the bud quickly. They know the law and can keep you out of trouble.

A good PM can increase earnings enough to cover their cost. Self management may be a good choice for you, but educate yourself on the value of a PM and then make an educated decision.

  • Property Manager Wyoming (#12599)

American West Realty & Management Logo

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Eric Greenberg
  • Investor
  • Philadelphia, PA
388
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573
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Eric Greenberg
  • Investor
  • Philadelphia, PA
Replied Oct 25 2022, 08:04
Quote from @David Chen:

Hey everyone! 

I'm back after lurking around the forums and listening to the podcasts.

I saved up some money (around $70k) and finally deciding to buy my first rental property. I'm looking into single family homes and small multi-family homes (duplex or triplex). I have a real estate agent (same one I used to buy my own home) and she gave me a couple properties. Single family homes are ranging 230-250k and duplex are ranging 250-450k. I am looking around Temple University right now - plan to rent out to college/graduate students. 

Hi David,

I agree with the folks above. From my experience, a personal home RE agent isnt always a great fit for an investment property unless they really understand both aspects/invest themselves/know that area well.

Do you know Temple and its rental market well? The folks I know in that space have said there has been a lot of new units going online and its been tougher the last couple years to rent unless the units are newly updated (en-suites/etc). 

Happy to talk more in depth via DM and also pass along a real estate agent who invests and has helped a number of folks buy/sell investment properties on Temple’s campus in the last couple years through the pandemic. 

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Melanie Thomas
Pro Member
  • Real Estate Broker
  • San Antonio
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Melanie Thomas
Pro Member
  • Real Estate Broker
  • San Antonio
Replied Oct 25 2022, 11:04

Hi there! When it comes time to look for a property management company, I recommend you start your search on the NARPM website. They are a great resource to find good PM companies in your area. Happy to help you navigate if you have any questions. Happy investing, good luck!

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Drew Sygit#2 Managing Your Property Contributor
  • Property Manager
  • Royal Oak, MI
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Drew Sygit#2 Managing Your Property Contributor
  • Property Manager
  • Royal Oak, MI
Replied Oct 26 2022, 07:21

@David Chen if you start looking for a PMC:

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator.

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

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Matt N.
  • Rental Property Investor
  • Philadelphia, PA
56
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93
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Matt N.
  • Rental Property Investor
  • Philadelphia, PA
Replied Oct 28 2022, 08:55

@David Chen

I agree with @Joseph Cacciapaglia and @Drew Sygit 100%

Check out my BIO. I have all the connections, from wholesalers to lenders, to PMC. When you're ready to work with an investment agent I am here for you. Happy to share/help. 

Best of luck!

Matt

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Rich O'Neill
  • Contractor
  • Chadds Ford, PA
458
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567
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Rich O'Neill
  • Contractor
  • Chadds Ford, PA
Replied Nov 4 2022, 11:51

@David Chen check out @Kevin M. from Otter Property Management and @Yuriy Skripnichenko of TrustArt for Property Managers. I have had clients that worked with both and had good reviews. I always recommend interviewing a few because they all have different pro's and con's. 

For investor agents, @Jimmy O'Connor is not an agent in the traditional sense but moves a lot of property in Philly. @Rob Lawrence and @John Knisely are 2 good investor focused agents. 

In short, yes build the team now and be ready to jump. 

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Kevin M.
  • Property Manager
  • Philadelphia, PA
277
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245
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Kevin M.
  • Property Manager
  • Philadelphia, PA
Replied Nov 4 2022, 11:58

@David Chen welcome to Philly RE investing. I'm a property manager and I got my start around Temple with a triplex in 2017. It's been wild since then. DM me if you want to talk more about the Temple area specifically and why I find it to be one of the most difficult areas to rent in the city right now..

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Rob Lawrence
  • Real Estate Agent
  • West Chester, PA
75
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Rob Lawrence
  • Real Estate Agent
  • West Chester, PA
Replied Nov 4 2022, 12:41

Thanks @Rich O'Neill!  Happy to help if you want an investment focused agent

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Yuriy Skripnichenko
  • Property Manager
  • Phialdelphia, PA
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Yuriy Skripnichenko
  • Property Manager
  • Phialdelphia, PA
Replied Nov 7 2022, 05:51

@David Chen

Feel free to DM. We are local PM company specializing in Philadelphia property management, working with investors. Be happy to help. 

Cheers, 

Yuriy  

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Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
  • Austin, TX
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Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
  • Austin, TX
Replied Nov 7 2022, 06:43

Let your agent work to find you the deal, if the deals she's sending you aren't juicy enough tell her to start cold calling and door knocking to find you a deal