Potential First Rental Property. Need Advice

3 Replies

I’m looking at a buying my first rental property in the Philadelphia Area. I️ will be house hacking in this house. The owner is selling the house because her husband passed away and she trying to get rid of all the properties. The house is a Triplex with 10 bedrooms and 3 bathrooms. The asking price was $350,000 and the seller went down to $312,500. My monthly expenses for the house including mortgage, 5% vacancy rate, 5% repair cost, water, taxes and insurance will be $2,400. It’s a block away from Temple University which my plan is to rent to students after renovation. The average rent cost on the block averages between $400-$500 per room. The owner is renting each room under market. The house was renovated in 2009 but needs work done. From the looks of the house I️ would need about $40-$50k which I️ would take additional loan. I️ am getting concerned because she doesn’t have any leases and each room is already occupied. I️ just need to some advice on this house? Thank you,

What is the return you will be getting with the current renters in place.  The nice thing about them not having a lease, is that you can raise the rent when you feel you can.

What's the zoning on the property and does it have a proper rooming house use variance? You can look up applicable L&I information at atlas.phila.gov .

@Christine thank you for the reply! Currently she is renting each room between $300-$350.

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