New Investor in Philadelphia, PA

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New Investor in Philadelphia, PA

Mary Umoh
New to Real Estate · Philadelphia, PA · Member since 2019 · 17 posts · 3 votes

Hi, I'm Mary. I recently moved to Philadelphia from NJ where I work as a software engineer. I'm a newbie to RE investing but I've spent a great deal of time listening to the BP podcast, reading books, forums and the like and I'm ready to finally stop talking about investing and actually do it.

My goal this year is to acquire my first property and house hack to start. I'm looking for 2-3 unit multifamily properties that fit in my $200k-$250k budget with minimal work to be completed. I'm not certain if I'll do conventional, FHA, or 203k but I'm doing my due diligence in finding and speaking with lenders and investor-friendly agents. My long-term strategy is to buy and hold.

My rental lease is up this August and I'll start applying for pre-approval in April. Until then, I'm going through the pre-qualification process to get an idea of where I may land. I have a good amount of savings and good credit.

I'm a bit nervous about it all but it'd eat me up inside to renew my lease and continue to help pay down someone else's mortgage.

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Chace Fraser
Realtor · Portland, OR · Member since 2017 · 357 posts · 259 votes
6y

@Mary Umoh welcome and congrats on reaching the point where you're ready to take action! House hacking is an incredible way to get into buy and hold real estate investing with a relatively low financial barrier to entry… plus the added benefit of reducing housing costs!

As far as lenders go, I work with a lender who is an investor herself, has worked with house hackers, and is licensed in all 50 states (DM me if you want her info). I’m also sure that @Nicky Lisewski can point you in the right direction (Realtors generally like to recommend lenders as we know which ones we work well with and which ones can close deals).

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  • Benson Juarez
    Specialist · Denver, CO · Member since 2015 · 80 posts · 26 votes
    6y

    This is a great plan Mary! Start with small manageable chunks. I would try and do the FHA 203K. You can roll your repair costs into the mortgage. That should work with 2-3 units pretty easily that needs a little work. Your total repair costs with materials and labor will have to be under $35K.

    But you will have to live there for a good period of time. I would ask your lender what that time period is so you can plan your next purchase. But if you don't do another FHA loan on the next purchase then you should be fine. Good luck!

    0Reply
  • Robert Palladino
    Architect · Philadelphia · Member since 2019 · 68 posts · 26 votes
    6y

    What areas of Philly are you considering?

    0Reply
  • Odie Ayaga
    Specialist · Delran, NJ · Member since 2016 · 2k+ posts · 951 votes
    6y

    Welcome @Mary Umoh! Are you planning on house hacking in Philly as well?

    0Reply
  • Nicky Lisewski
    Rental Property Investor · Philadelphia, PA · Member since 2019 · 55 posts · 28 votes
    6y

    Welcome Mary! One of the scariest moments of my life was signing on the dotted line for my house hack triplex in 2012.  And it was one of the best decisions that I ever made.  If I hadn't started with that, I wouldn't have gotten my real estate license and be up to 10 doors now.  Sounds like you have a great plan.  Aside from Bigger Pockets I'd also suggest the real estate investor groups like DIG and DPI.

    0Reply
  • Chace Fraser
    Realtor · Portland, OR · Member since 2017 · 357 posts · 259 votes
    6y

    @Mary Umoh welcome and congrats on reaching the point where you're ready to take action! House hacking is an incredible way to get into buy and hold real estate investing with a relatively low financial barrier to entry… plus the added benefit of reducing housing costs!

    As far as lenders go, I work with a lender who is an investor herself, has worked with house hackers, and is licensed in all 50 states (DM me if you want her info). I’m also sure that @Nicky Lisewski can point you in the right direction (Realtors generally like to recommend lenders as we know which ones we work well with and which ones can close deals).

    1Reply
  • Troy Sheets
    Developer · Philadelphia, PA · Member since 2013 · 1k+ posts · 902 votes
    6y
    Originally posted by @Mary Umoh:

    Hi, I'm Mary. I recently moved to Philadelphia from NJ where I work as a software engineer. I'm a newbie to RE investing but I've spent a great deal of time listening to the BP podcast, reading books, forums and the like and I'm ready to finally stop talking about investing and actually do it.

    My goal this year is to acquire my first property and house hack to start. I'm looking for 2-3 unit multifamily properties that fit in my $200k-$250k budget with minimal work to be completed. I'm not certain if I'll do conventional, FHA, or 203k but I'm doing my due diligence in finding and speaking with lenders and investor-friendly agents. My long-term strategy is to buy and hold.

    My rental lease is up this August and I'll start applying for pre-approval in April. Until then, I'm going through the pre-qualification process to get an idea of where I may land. I have a good amount of savings and good credit.

    I'm a bit nervous about it all but it'd eat me up inside to renew my lease and continue to help pay down someone else's mortgage.

    Welcome Mary,

    My first Philadelphia investment was a 4-unit I house hacked and it was a great decision for me. I can't recommend it highly enough for anyone starting out. Good luck and let me know if you have any questions, always happy to get a coffee and see if I can help point people in the right direction. 

    0Reply
  • Mary Umoh
    OP
    New to Real Estate · Philadelphia, PA · Member since 2019 · 17 posts · 3 votes
    6y

    @Benson Juarez

    Thank you for this knowledge! I did not know that repairs + labor had to be under 35k. Here in Philly, you have to have architectural plans drawn out for a renovation over 25k.

    0Reply
  • Mary Umoh
    OP
    New to Real Estate · Philadelphia, PA · Member since 2019 · 17 posts · 3 votes
    6y

    @Robert Palladino

    I'm thinking about opportunity zones, Germantown and West Philadelphia.

    0Reply
  • Mary Umoh
    OP
    New to Real Estate · Philadelphia, PA · Member since 2019 · 17 posts · 3 votes
    6y

    @Odie Ayaga

    Yes, I am!

    0Reply
  • Mary Umoh
    OP
    New to Real Estate · Philadelphia, PA · Member since 2019 · 17 posts · 3 votes
    6y

    @Nicky Lisewski

    Very inspiring! I'll be sure to look into those groups, thanks so much. Are they here in Philly?

    0Reply
  • Troy Sheets
    Developer · Philadelphia, PA · Member since 2013 · 1k+ posts · 902 votes
    6y
    Originally posted by @Mary Umoh:

    @Benson Juarez

    Thank you for this knowledge! I did not know that repairs + labor had to be under 35k. Here in Philly, you have to have architectural plans drawn out for a renovation over 25k.

    You can use the FHA 203k program for a full gut, I'm sure there's a limit but I have friends that just did one on their single family home and spent $120k.

    0Reply
  • Mary Umoh
    OP
    New to Real Estate · Philadelphia, PA · Member since 2019 · 17 posts · 3 votes
    6y

    @Chace Fraser

    Yes, I firmly believe it's the best way to go and after reading Set For Life, I'm all in. I'll DM you!

    0Reply
  • Mary Umoh
    OP
    New to Real Estate · Philadelphia, PA · Member since 2019 · 17 posts · 3 votes
    6y

    @Troy Sheets

    That's amazing! I'm sure the rents from the 3 other units covered your full mortgage payment. I'd really like to grab a coffee and talk RE. Happy to learn and add whatever value I can to you.

    0Reply
  • Mary Umoh
    OP
    New to Real Estate · Philadelphia, PA · Member since 2019 · 17 posts · 3 votes
    6y
    Originally posted by @Troy Sheets:
    Originally posted by @Mary Umoh:

    @Benson Juarez

    Thank you for this knowledge! I did not know that repairs + labor had to be under 35k. Here in Philly, you have to have architectural plans drawn out for a renovation over 25k.

    You can use the FHA 203k program for a full gut, I'm sure there's a limit but I have friends that just did one on their single family home and spent $120k.

    Oh wow. That's good stuff right there!

    0Reply
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