Philly investing

[HJ Bercy]

Hello All

I have been looking into investing in the Philly market and a deal came across me from a agent, here it is:

N. 12 th street, philly --neighborhood C/D class

purchase cost:  $85k  Taxes: $1190.00/year  Water: $60/month

2 tenants in place been there for 3 years : Total rents : $1475.00/month

Your feedback would be great!  Do u think this is a good deal?? What do think of the Philly market?

Thanks--

[Joshua Weidman]

HJ - I know this area well and I think I know the house/deal. The area is more C+, bjut I'd never recommend buying a property with tenants in place unless there is (a) a strong and documented record of timely rental payment; (b) you have the opportunity to speak to the tenant about the condition of their unit and the property in general prior to the purchase; (c) you run a thorough background screening on the tenant to make sure they will pass your standards for a resident.

Agents often seek to sell properties when they should strive to build relationships by offering good investments. I'm not saying that's the case here, but often agents don't understand the details of a buy and hold investment beyond projections on a piece of paper. The real world is a lot more complicated. In B- to D grade areas, you'll need to do some additional due diligence to make sure you aren't buying someone else's problems.

If this is your first buy and hold investment, start by looking at some deals from local wholesalers or at one of the few turn key providers in the market (of which I am one). See if there is a difference in the quality and price provided from these two groups as opposed to what's offered from your agent. 

Good luck.