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Updated over 7 years ago on . Most recent reply

Account Closed
  • Philadelphia, PA
4
Votes |
28
Posts

Is This a Deal...or Speculating?

Account Closed
  • Philadelphia, PA
Posted

Hi BP,

I'm on the hunt for a house hack in Philly, and seeking some advice for a duplex  (3/1, 1/1) on the market. I need a gut check -- in this competitive market, where can one take some liberties to buy in the path of progress, live and wait. And where is such a strategy just "pie in the sky" thinking, and too risky of an endeavor when asking price is doesn't meet the 1% rule? 

To clarify, my thinking would be to live in the 1/1 for a year or two while the neighborhood continues to improve and gradually increase rent. And while monthly cashflow is -$495, if I add that to market rent for the 1/1 ($950) then my girlfriend and I would only be paying $125 more than what we are currently paying to a landlord every month ($1,200) while building equity in a home in a neighborhood where prices are only increasing. 

Am I being TOO optimistic? Or are these compromises necessary evils in hot metro areas?

The Numbers:

Thanks,

Jesse Fields

Most Popular Reply

User Stats

224
Posts
36
Votes
Jessica H.
  • Flipper/Rehabber
  • Easton, PA
36
Votes |
224
Posts
Jessica H.
  • Flipper/Rehabber
  • Easton, PA
Replied

This is a hot market and I do not know the Philly market but I wouldn't do a deal where I have negative cashflow. Dig deeper for better deals.

  • Jessica H.
  • Loading replies...