Looking to BRRR (buy, renovate, refinance, repeat) a multi family home in West Philadelphia. Any advice/feedback/information appreciated as I am a first time investor!
Read - read LOTS... this site is a good starting point. You might also look into the group "DIG" in the Philadelphia (Ft Washington if memory serves me) area.
The resources are all out there, I would suggest asking specific questions that let others know that you are at least looking to involve in a BRRR and aren't looking to shortcut one. Once you get through some of the materials, you'll find that the answer your question posted above is right in front of you. Here you'll find a community thats willing to steer you in the right direction... but you've got to take some action yourself.
Good luck & hope to hear back from you soon!
Originally posted by @Matt Avila :
... You might also look into the group "DIG" in the Philadelphia (Ft Washington if memory serves me) area.
DIG main meetings at the time of my writing this are held at North Hills Country Club in Glenside; Fort Washington was the location about five years back.
@Steve Babiak - its been a few years since I was at DIG.... quite a number of years I guess. Thanks for the clarity.
My current strategy is brrring duplexes in west philly. There are vast differences in the areas of west Philly to invest in. Near the colleges which is an expensive area, Wynnfield and Overbrook which are nicer areas much less expensive than the college area, but is more like an area to flip. Then there are the areas that I guess are C areas. I like those areas. The houses are cheap and since you have 2 units to generate income the cash flow is great. Multi family's are hot right now so they don't last on the MLS too long. And they are over priced. Best bet are to find wholesalers.
ARV's range from 130-150k depending on number of bedrooms. Therefore not often am I able to pull a lot of "extra cash out" based off the purchase and rehab but if I break even I'm happy. If I want to make more money from the cash out I'll buy a single or triplex. However I don't like buildings with more than 2 units. More things to deal with such as the fire alarm monitoring and certifications, more trash, and more personalities to clash.
Reading is one thing, You can read all day and night to learn theory.
You need to start talking to people that do what you want to do.
BiggerPockets is a great first step, now snowball the momentum and meet people who are walking the walk.
I don't trust people's worlds who talk the talk without real like experience to back it.
Example: My parents. I love them to death, but would never take their advice on real estate. They are smart people, but have never invested in real estate. When I talk to them about what I do they act interested, but never ask questions.
My friend Al. He is a high school dropout, but a smart businessman. The guy owns 20+ single family buildings, in low income neighborhoods. He build the system and now it feeds him and his people. We have done business together and I like his input on my strategy.
Best of luck to you and your business. I am also looking for a building zoned RM or RSA w/ a variance in west philadelphia. My farm is between Fairmount ave to baltimore ave up to 52nd street. We are going to pay a premium compared to other neighborhoods, though it must meet my fundamentals.