All Forum Posts by: Alan Asriants

 Eric nailed it. 

I will just add:

So what you need for the rental license:
1.You need to get a tax ID number from the city of Philadelphia
2. Once you get the tax ID number you need to get a business activity license (i think its also called a commercial activity license) (through eClipse)
3. Under your business license you can now get a rental license (if your home is built before 1978 you will need to get Lead based paint test done and submit it to their portal, otherwise you will get a kickback) 
4. Once you have a rental license you can use it to get a Certificate of Rental Suitability
5. You want to deliver to the tenant:
-The certificate of rental suitability
-Lead based paint brochure (can be found online)
-Bed bug PHILA brochure
-partners in good housing
Just have them sign a form that they received those items

I wouldnt recommend paying it off unless your rate is very high. Keep the cash, park it in a high yield account for now and wait patiently for a deal or change in market. 

Hey Will,

I am an investor/agent in the phila area. Id be happy to help. Feel free to reach out anytime!

Tanner, I have a feeling I know that property you are refering to. If I am correct this is the Pine rd duplex. 3bed 2 bath would rent for 1800 up to 2000 depending on how much renovation there is. And the one bed would rent for $1300 if fully renovated. As an agent/investor I'd be happy to help you run those numbers and analyze deals in the Phila area. Feel free to reach out anytime

Hey Raul, I'd be happy to connect you with my local CPA! Reach out anytime

Agreed! I would add in Recessed lighting and HVAC!

This market is very interesting and each market from what Im seeing is super different. I know rates and prices are holding people back, but what else?

Have you tried looking into multi family property? Possibly starting out with a house hack first. This way you can put down 3.5%, offset your living expenses and get started that way.
Generally if the cost of your mortgage after rent from other units is less or the same as rent would be for your unit, it is worth it. 

Buying:

1. An investor agent knows how to run numbers on properties and can help determine a good or bad deal. This is important because an agent who understands the numbers, rates of return, cash on cash, cap rates, NOI, and other financial metrics can help you identify a profitable investment. Without this understanding, you may be left with an agent who simply opens doors for you without providing any real value.
2. An investor agent has experience dealing with tenants and can give you tips on how to handle certain situations. Dealing with tenants can be challenging, and an agent who has never been exposed to this may not be equipped to help you navigate these situations. An investor agent can provide valuable insight into how to properly communicate with tenants and handle any issues that may arise.
3. An investor agent understands multiple investment strategies. This kind of agent has had experience in long term rentals, fix and flipping, etc. Having an agent understand multiple types of investment strategies can help them identify the best use for a property in mind. This is important because different investment strategies require different types of properties and different approaches to investing.
4. An investor agent understands the importance of location and why one part of a block might not be the best part to invest in while the other is. The proximity to things, what kind of tenants to expect from certain areas, and other location-based factors can all impact the potential profitability of an investment. An investor agent can help you identify the best locations for your investment goals.
5. An investor agent understands layout and design. This kind of agent will have experience rehabbing and can guide you to making the best use of the space you have. Poor layout and design can reduce the value of a property and make it less attractive to potential tenants or buyers. An investor agent can provide valuable insight into how to optimize the layout and design of a property to maximize its potential.
6. An investor agent understands renovations and budget. Someone who has experience rehabbing a property can walk through a property with you and give you a solid estimate on what they think it would cost to rehab the place. They would also give you tips on what you should fix, point out potential problems that could occur and even point out some nice upgrades that others couldn't miss. They would also be able to point out certain red flags like structural concerns that raise some eyebrows. This can help you avoid unexpected costs and make more informed decisions about what to renovate and how much to spend.
7. An investor agent has a good connection of lenders, title insurance companies, contractors, handymen, insurance agents, etc that they can connect you to. This is important because finding reliable and trustworthy service providers can be challenging, especially for those who are new to investing. An investor agent can connect you with providers they have worked with in the past and trust to provide quality service.

Selling:

1. An investor agent understands how to sell fix and flips and how to market them the best way. If they have experience selling them themselves, they have already had certain issues come up that they have learned how to address when marketing the property. This can help you sell your property faster and for a higher price.
2. An investor agent understands what is most valuable to you when selling a property - usually it is your bottom line. An investor agent can help you negotiate the best price and terms for your property to maximize your profits.
3. If repairs need to be made after inspections, an investor agent has the connections to fix those problems with a budget in mind. This can help you avoid unexpected costs and keep your budget under control.
4. An investor agent knows how to deal with tenants when scheduling showings when selling a multi-family home. This is important because

The biggest problem I have is when tenants try to tell me that they did nothing wrong when something breaks. At first, with limited experience I fell into the trap of fixing things for tenants and them taking advantage. As I have gotten more experience I can do a better job of identifying the issue and explaining to the tenant that the reason something broke was due to negligence and nothing else. 

I have found that a good way to mitigate this and overcome this issue is to get the "expert" opinion. This way I am 100% sure and the tenant is as well as to what caused the issue in the first place. 

For example, if your dryer breaks. I ask the technician why. If the motor burned out because it is old, then I claim responsibility. If the lint tray was not cleaned and clogged or the dryer was over packed, it is on the tenant

I also have the tenants be responsible for the first $100 in repairs for all appliances. This way tenants have an incentive to keep the appliances in good condition and care for them. But if the tenant breaks the unit due to negligence they are responsible completely. If it is an issue that is not due to negligence I fix the unit and pay for anything exceeding $100.