Single Family Vs Multi Philadelphia

[Dan Red]

I have 10 single family rental properties in Philadelphia and am thinking about getting a small multi, most likely around 2-4 units. What are the pros and cons to a multi in Philadelphia? What type of extra regulations are required? (Such as fired code, etc) 

[Yuriy Skripnichenko]

@Dan Red

The cons is most likely you will have bigger tenants turn over in a multifamily than in a single house. The pros you will have better return on your investment. It all depends on the type of the property and the area you are in.

As far as regulations you will have to pay city refuse fee $300 a year per property (for any property 2-4 units). Also if it’s a 3-unit property and up you will have to have hardwired fire alarm with a station and fire extinguishers in some areas. The fire alarm has to be inspected every year as well as the extinguishers (about $200-$250). Also you will have to have one electric meter for common areas in a property with 3 units and more, that you will be paying for. If you are planning on having section8 tenants you will have to be paying for water since there is no separate water meters for each unit. 

Here in “partners for good housing” pamphlet you can find some information about regulations for multifamily properties https://www.phila.gov/li/Documents/partnersinhousing.pdf

@Dan Red

Here you can find city codes and regulations http://www.phila.gov/li/codesandregulations/Pages/codes.aspx

Hope this helps.