Philadelphia PA New to Investing

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Philadelphia PA New to Investing

Shawn Ryan
Philadelphia, PA · Member since 2017 · 18 posts · 2 votes

Hey everyone. I'm looking to get started in investing in south philadelphia. Just wanted to post this to see if I can get some responses from local investors who I can network with and reach out to for advice. I been studying the market for quite some time but haven't pulled the trigger on anything yet. I'm interested in single family and multi units right now. Looking to get my feet wet but I'm having a hard time figuring out how I want to start. I been looking at houses but I find some are in such bad shape that I'll have to use a 203k. Some houses I've seen aren't in as bad of shape but are over priced. 

I work in exterior renovations specializing in Windows, siding, doors, etc. But I'm having a hard time estimating the cost of repairs like uneven floor joists, drywall install/removal of plaster, moisture in basement, electric, plumbing,  etc. 

When I run into these situations it makes it hard for me to put in an offer because I'm unsure of the cost of repairs meaning I can't determine if the property will be equitable or not. 

Any advice helps

Thanks, 

Shawn

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Account Closed
Pottstown, PA · Member since 2017 · 79 posts · 31 votes
8y

Welcome @Shawn Ryan! I'm in the middle of reading Estimating Rehab Costs by J Scott. It's a great source of detailed information. That would set you in the right direction. I'm new to the game as well. I've talked to some local contractors and explained what I'm doing. Some have agreed to come with me on showings to give me a very rough estimate for reno. Even if I have to pay for their time I feel that if I pay attention I'll be able to rough estimate for myself.

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  • Calvin Lipscomb
    Brooklyn, NY · Member since 2016 · 316 posts · 130 votes
    8y

    I am in a similar position myself.  I am also looking at the Tax Lien/Sheriff Sale that is happening on February 21.

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  • Account Closed
    Pottstown, PA · Member since 2017 · 79 posts · 31 votes
    8y

    Welcome @Shawn Ryan! I'm in the middle of reading Estimating Rehab Costs by J Scott. It's a great source of detailed information. That would set you in the right direction. I'm new to the game as well. I've talked to some local contractors and explained what I'm doing. Some have agreed to come with me on showings to give me a very rough estimate for reno. Even if I have to pay for their time I feel that if I pay attention I'll be able to rough estimate for myself.

    3Reply
  • Shawn Ryan
    OP
    Philadelphia, PA · Member since 2017 · 18 posts · 2 votes
    8y

    Thanks for the info @Elizabeth Connelly! I will definitely pick up a copy of the book. I work for a home improvement company that specializes in roofing, windows and siding so I can figure out the cost of things like that but I have no idea when it comes to mold remediation, structural damage, electric, etc. So that book should definitely be useful

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  • Matthew Teter
    Real Estate Coach · Austin, TX · Member since 2018 · 65 posts · 29 votes
    8y

    Shawn,

    Do you have an area in South Philadelphia you are looking in? Do you have any additional criteria? Who are you partnered with you to help you find properties? If you would like to sit down and review how people start and connect you with properties to review as well as results people have gotten in that area please let us know. We would love to help you gain clarity on your criteria and take the next step.

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  • Joseph ScoreseBusiness Member
    Banker · Philadelphia · Member since 2009 · 2k+ posts · 633 votes
    8y

    Hi @Shawn Ryan,

    How are you. Most real estate agents are not familiar with pricing on renovation costs since they have a RE License not a GC License. Diversified Investors Group and HAPCO are extending a rehab tour April, May and June. Also, starting in March there will be a rehab construction sub group created in Philadelphia and different services will discussed each month.  Let me know if you have any questions.

    Regards

    Joe Scorese

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  • Janine Covello
    Rental Property Investor · Eastchester, NY · Member since 2017 · 39 posts · 36 votes
    8y

     I am also looking to invest in Philadelphia although slightly different part than you, and going through the same exact thing! One of my friends mentioned bringing a contractor in to inspection, which I was thinking I'd definitely be doing in the future, but Elizabeth's idea about paying a contractor for his time to come to a showing on a property you think is especially helpful sounds EVEN BETTER, and definitely worth it.

    Some of these houses are so old...so many built in 1920... It is really hard to tell the difference between what has good bones and just needs some plaster and floors and what is going to need to be completely remodeled.  I've been spending more time taking notes about what I see when I go into the basement, as this helps me make an itemized list of construction issues I'll likely need to confront- IE exposed wires, moisture, pipes that don't connect, panels that aren't set up right. I figure the better my notes, the more questions I can subsequently discuss with contractors. Another thing I have been spending more time taking note on is the condition of the door and interior/exterior windows and window frames. 

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  • Shawn Ryan
    OP
    Philadelphia, PA · Member since 2017 · 18 posts · 2 votes
    8y
    Originally posted by @Janine Covello:

     I am also looking to invest in Philadelphia although slightly different part than you, and going through the same exact thing! One of my friends mentioned bringing a contractor in to inspection, which I was thinking I'd definitely be doing in the future, but Elizabeth's idea about paying a contractor for his time to come to a showing on a property you think is especially helpful sounds EVEN BETTER, and definitely worth it.

    Some of these houses are so old...so many built in 1920... It is really hard to tell the difference between what has good bones and just needs some plaster and floors and what is going to need to be completely remodeled.  I've been spending more time taking notes about what I see when I go into the basement, as this helps me make an itemized list of construction issues I'll likely need to confront- IE exposed wires, moisture, pipes that don't connect, panels that aren't set up right. I figure the better my notes, the more questions I can subsequently discuss with contractors. Another thing I have been spending more time taking note on is the condition of the door and interior/exterior windows and window frames. 

    Exactly what I've been doing as well. I actually reached out to my buddy who's a contractor to be able to help me out with estimating costs as well as ordered a copy of the book that Elizabeth recommended. I know it's just going to take experience and time to continue figuring out what is a disaster vs not a big deal. Good luck!

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