I am an investor with 3 buy hold rehabs in PHL outskirts. I need advice on an opportunity out of my scope, but the numbers warrant a look.
A friend inherited a single dwelling RSA-5 in District 6 due to recent passing of an elderly relative. No mortgage on the property and the family is open to seller financing. The main dwelling needs full gut but more importantly, it has a detached garage behind the house that faces the next street over. It is the only garage on that street. The rest are front entry to homes.
My team and I mainly stick to rehabs. This would be our first new build and require rezoning approvals. The intention is hold and rent. Open and interested in advice from the experienced. Is the juice worth the squeeze?
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
2y
@Moira McKee What are you looking to build and is this a by-right subdivision in the RSA5 district? If not, you will need a variance which means showing hardship. There are circumstantial opportunities to obtain variances without presenting a hardship case but it can be a lot of time and effort. Also, its very difficult to make ground up development pencil in an area like Port Richmond, even if you were to self perform due to construction costs and current cost of financing. Keep in mind, if the subdivision is not by-right and your investment group wants to seek a variance, you are able to do so as the equitable owner meaning you don't have to purchase the property before submitting your zoning application, receiving your refusal and appealing to the ZBA. This would alleviate the need for seller financing, at least until you settle on the property.