Any philly investors with more than one Multi units ??

Question

hey everyone, with the lowest interest rate in many months now here. Would like to purchase very soon. Im 26 with 60k for a property. I live in North Jersey which the taxes really make it not worth buying along with the salt tax. I have the following choices.

1. move to Philly and buy a 2 or 3 unit property to house hack with the hope of getting 4-6% cocr after one year living in one of the units.  
2. purchase a townhome in Philly and airbnb it  
3. purchase a single family house and rent out the rooms in Philly.  

i would be doing a conventional loan as i do want to do fha since rates are low now trying to see which method would yield me to cash flow / live rent free with some cash flow. i read many books and all say you profit when you buy so i want to buy right. i can buy up to 420k and no debt. what method makes the most sense? i have not found any property that cash flows or breaks even which makes me think all prices due to the seller's market is over price by 10%

Jimmy O'Connor · Answer

@Mario Gonzalez if you can find exactly what @Justin Kane is talking about then go for it. If you are looking for something simple, getting your foot in the door in this market can be done successfully using any of those methods. SF rentals go for cheap in Philadelphia since everyone is looking to rent out multi families so the competition is not as tough. The fact you have 420k gives you plenty of wiggle room if you are looking to do multiple small properties but can also allow you to do new construction if that is not too much of a monster for you to handle. Have . you given any thought to which neighborhoods you are looking for to get those given returns? I can think of a few that would yield higher returns but you may sacrifice the location of wanting to house hack.

Justin Kane · Answer

no invest 50k into an apartment syndication deal with 16-20%projected 5 yr yield, or 2 yr 10% straight return giving you ~450$/mnth then take the 10k and partner or fha a duplex or bigger and house hack with your 450/mnth returns and offset costs you should be living for free and open to new possiblities like studying and learning and growing