Hi fellow investors,
I am having a tough time starting out. I have reach out to several other investors and realtors looking for deals.
The frustrating part is realtors sending me these poor old properties. I am not looking to flip and likely not experienced enough to rehab. Which makes me look at different markets almost everyday. I live in the Philadelphia area, but this area is full of old properties and way overpriced. I have been looking a lot in Florida but again, more and more people are getting into FL and it’s slim picking. My goal is to find a place that is reasonable <$250k, that’s I can see good cash flow with the 1% rule, but having trouble finding that.
I have looked into STR, but again, I would require a PM and unfortunately that and HOA fees are extremely high which makes it a negative cash flow which is why I redirected thing to long term rental.
I may consider the Texas market but will require a PM.
Any suggestions would be greatly appreciated.
Are you planning to pay with cash? or financing?
I'm in the Philadelphia area, and personally I have not purchased a deal in the last two years and I'm usually a cash buyer. Our market does have some deals but usually around areas that I don't feel as comfortable investing in. From the forums, either FL is good or the midwest is good and in your case you still have to get a PM which will eat into the profits.
Personally my first deal I didn't get 1%, but maybe if you lower it in the Philly area you can find something mainly to just get started. Worst comes to worst, just keep saving and when the opportunity arises you will be there. Keep on networking and maybe somebody will be able to bring you an off market deal.
There's houses below $250k that hit the 1% Rule.
Questions is what type of tenant pool are you after? ..young professionals, section 8 or low income families, middle class families , mix, college grads, college students.etc?
Being a buy and hold investor takes thick skin, I'm learning that everyday. As buy and hold investor you want to buy based off ( location, location , location!) look at the cap rate and see if you can improve it via forced appreciation.
If the area is B class hitting 0.8% that's good too. The higher the percentage the chances of the area being sketch.
Don't expect home run deals but avoid money pits. If you can even cash flow $100 a month by your second year holding that's even good news.
PM me if anything, I live right in Brewerytown and have a rental in Manayunk.
Hey ! There are plenty of properties that hit well above the 1% rule, you just have to be willing to invest in areas that you probably wouldn't want to live in. I'm a real estate agent/investor- I have two duplexes, both in Kensington. Over 3 years so far, i've had very minimal problems, and would love ton share some tips with you. I also deal with almost 100% investor clients, and have a great network in the city. Feel free to reach out!