Taking My First Step in Philadelphia - ADVICE WANTED!
Hi All,
After researching and biggerpocketing for about 6 months I'm closer than ever to taking my first step. I have a list of several houses I found on RedFin and have an agent lined up to show me this weekend. Despite being very early in the process, I'm still very excited and nervous.
My business model is Buy/Hold 3-5 Unit Homes in the $75-150k range. My ultimate goal is to have at least a portfolio of 10-15 MFH in 5 yrs and 25 in 10 yrs.
My current top choice is a 5 Unit for $140k. It's been on the market for over 6 months, so I plan to come in low at $95k. I plan to do about $5-10k in renovations to attract some good tenants and maybe get a premium on the rent.
Annual Rent Income +$34k (~$600 each)
Annual Expenses -$12k
- Taxes, Ins., Mtce - $8k
- Vacancy 10% - $4k
Annual Cash Flow +$22k
Based on my numbers, it passes the 2% rule, but please let me know if I've missed a glaring costly item. One of the units is for a commercial business, don't think that changes anything, but I could be wrong. I believe Philly requires a business license for all landlords....is this true?
ALSO - are there a list of specific questions that I must ask or should ask the agent?
Any advice will be greatly appreciated!
Thanks so much - I will post my progress.
Cheers,
Phil