All Forum Posts by: Alex Uman

@Jane Kai all depends on location and condition. Philly is very block by block and values can change drastically crossing over major border streets.

I often see Norristown as providing a unique opportunity for Pennsylvania and out of state investors alike. Many investors point to the Riverfront Redevelopment plan as having the potential to one day turn the town into the next Phoenixville or even Manayunk. (https://norristown.org/424/Riv...) Appreciation seems somewhat inevitable in the long run though many often pass on the opportunity to invest here.

For many investors I work with local to Philly and Delaware County it is simply too much traffic up 76 to make the drive worth it to manage properties or to work on flips. For Montgomery County investors I've seen the city as a point of contention with some citing sub optimal results in past projects as well as problem tenants giving them pause on picking anything up here. Others are more optimistic and have changed their tune with more recent successes giving the town a chance in the last year or so.

Do you invest in Norristown? If so what do you see becoming of the town in the longer term. Would you flip here or do you still see it as more of a rental pocket. If not, what prevents you from doing deals there even if it's simply the snail paced commute up 76.

Investment Info:

Single-family residence buy & hold investment in Eddystone.

Purchase price: $126,000

This Eddystone twin came in turnkey condition with tenants paying solid rent. My investor plans to do minor upgrades to slightly increase the rent before refinancing out the majority of his investment. This pocket remains solid for excellent rental income as appreciation continues throughout one of Delco's most beloved school districts!

Following. Have been shocked by such increases especially in SW Philly in the last 6 months alone.

Investment Info:

Single-family residence buy & hold investment in Darby.

Purchase price: $69,000

This twin sold for a significant discount with a problem tenant that turned their situation around and went ahead and prepaid the next few month of rent. Right across the street from Collingdale, this Darby twin has the potential to appraise for up to $200k with the right updates!

@Patrick Gushue that all depends on what areas you'd be comfortable living in as well as the money you have saved for your downpayment. Multifamily properties are highly desirable throughout the city and can be tough to find without paying a premium. Alternatively I'd recommend extending your search into the surrounding suburbs as multis can be somewhat easier to find just outside of the city. Before moving anywhere to invest, drive around and check out the different neighborhoods and do some research to decide where you'd be comfortable living.

@Angela Romero investors of all experience levels can succeed investing in long term rentals all over the city. There are definitely areas that are better for SF vs. Multifamily but the biggest factor that should affect what sort of deals you buy should be how much you're willing to spend on your first property here and how you're looking to finance. Certain pockets have become significantly more expensive in the last few years, even for distressed and off-market inventory. Multifamily and development projects in the works have investors flocking to specific pockets that they project to be the next Fishtown.

You'll need to ask yourself what your particular goal is whether that is cashflow or longer term appreciation then figure out where the best area is to achieve said goals. Good luck in your investing and in grad school!

@Mayer M. only time will tell. Either wholesale lumber suppliers or big box stores such as Lowes and Home Depot will start to reduce their pricing and the others will follow suit in order to compete. Crazy price increases as we've seen in the last year have reminded investors of the importance of closely following macro economic trends whether its for lumber itself or the supply and demand of housing as a whole.

Working with distressed sellers in Philadelphia in particular can be quite difficult. @Jimmy O'Connor can provide some great insight into the matter. Many people have watched their neighborhoods change throughout their lives here and it can be emotional to have to part ways with a family home or investment property that unfortunately fell into disrepair.

That being said, and this goes for Philly and anywhere else in the US, at the end of the day distressed sellers want to sell their property. While it may be difficult to get the right certs, deeds, wills, payoffs and signatures from such sellers in order to close, as long as they really do want to sell wholesalers provide a valuable service for people looking to get rid of problem properties.

@Joe P. I've seen a surprising amount of success with the acquisition of squatter properties. The key is closing on them at enough of a discount that the deal makes sense regardless of the occupant. Factor in the additional holding costs and the potential cost of either "cash-for-keys" or an eviction to make the deal make sense. Looking back on it I think you'll find you ended up getting the property for a steal when you've finally vacated the unit and leased to a better tenant. Oftentimes the headaches you'll experience directly after closing such properties will be worth it in the end.

Good luck on this investment!