All Forum Posts by: Alex Uman

@Yianni O'Hara Congratulations on taking the first step toward financial freedom. Plenty of opportunity to BRRRR here in Philadelphia and in the surrounding area. I definitely agree with your mindset on sales and success in REI. Having such a positive and open mindset toward solving the problems of others will help you go far in your journey. I wish you well and do not hesitate to reach out if you'd ever like to discuss the market and various strategies I've seen employed by investors at all levels in the Philly area.

Investment Info:

Single-family residence buy & hold investment in Darby.

Purchase price: $60,000
Cash invested: $20,000

Contributors:
Robert Gorra

Another excellent buy and hold opportunity in Darby. This property came with tenants paying slightly below market rent and needed minor updates to appraise for a higher value. My investor is working with the tenants to increase the rents as he completes the rehab before refinancing out the majority of his investment. Congrats to @Robert Gorra for picking up another good one for his growing portfolio!

@Errol M Tazbaz Philly is a great market for BRRRRs and multi families. Appreciation keeps chugging along as people flock here from other Northeastern cities they have been priced out of. Feel free to reach out if you'd like to discuss the market here!

@Colin Masterson congrats on taking the first step in getting into real estate investing. Bigger Pockets has a wealth of knowledge to help you get started and offers a unique platform dedicated to professionals in the field. As Jimmy mentioned you'll definitely need to pay up in these neighborhoods to get started. Even value adds in East Falls can be a bit pricey due to rapid appreciation in nearby Germantown and Manayunk. Regardless it is definitely a great area to house hack and will be well worth the price in the long term. Feel free to reach out at anytime if you have any questions about the market

Also @Robert Gorra is an experienced investor contractor and can help with any work you may need done as well as insight into the market. All the best!

@Robert Gorra you're a constant wealth of knowledge man keep up the posts. In regards to your third point, some of the best deals I've seen with the juiciest margins have been properties in atypical neighborhoods, houses with squatters/delinquent tenants and those with structural issues. For the seasoned investors willing to take on the challenge of these deals, these can turn out to be the most rewarding in the long run thanks to the heavily discounted acquisition price on the front end.

Hey @Buyan Thyagarajan, if you are purchasing with cash, your closing costs would simply be the cost of running title/title insurance policy and the cost of transfer tax (1% PA wide + whatever extra the county charges, 4.28% total in Philadelphia, 2% total in Delaware and Montgomery Counties). With lenders you must pay whatever fees and points they charge at closing.

For HOI, that all depends on the size/square footage, type of property (rowhome, twin, detached, multi, etc.) as well as the location (proximity to rivers and creeks may require flood insurance). Many insurance companies have calculators on their website with which you can estimate the annual cost of HOI for a subject property.

Couldn't agree more. Avoid any paid online classes. They are meant to suck money from you, rather than teach you anything worthwhile. This business can be learned entirely for free. The important point is doing it ethically and in a way that benefits all parties to the transaction. Good luck!

Thanks for the shout @Scott Wolf. I agree with both Scott and Rich, an LLC is the way to go, especially if you're doing it as a 50/50 partnership. Additionally, 1031s would only work for rentals. Feel free to reach out at any time with any questions @Steven Cramer. All the best!

@Ruben S Paul I'd consider this to be the new norm throughout the city. Everyone and their mother would love to house hack in Philly, especially in the areas you mentioned. Multis have become unicorns in such areas as most owners are not interested in selling. If you're willing to set your sights further west, I'd recommend looking in nearby Delaware County where multis can be found for significantly less if you look in the right places. All the best!

Jimmy Pockets at it again with another novel of a post! If only other wholesalers followed these commandments we wouldn't be facing these new regulations. Keep up the insightful content!