All Forum Posts by: Amar P.

Thanks for posting the data. Hottest part is Northeast. I have first hand experience!

@Rashmi Chanduraj, Philadelphia is block by block city. I am also trying to buy a MF property. There are some deals out there, but you have to dig. I live in the city and agree with@Gregory H.

@Michael Marrero, did you find GC in Philly? I am looking for one. Appreciate any input.

@Steve Babiak Appreciate your reply. It is percentage of annual rent that would be paid to tenant placement service. I plan to hire a regional placement service. I based the placement cost on their advertised charges. What do you think of the deal overall? Is it worth pulling trigger? I am somewhat concerned with basement moisture and mold growth although seller has offered to make all reasonable repairs.

Hello Philly Folks,

Please help me analyze a deal on a Triplex (3bed/1bath per unit). Please note BP calculator does not allow me to account for FHA loan cost in a correct way. Therefore, I had to increase the purchase price from 520 K to 528 K so that my loan amount correctly reflects FHA UFMIP. As you know UFMIP is rolled into the loan. So loan amount on 520K with 3.5% down and UFMIP rolled into it equals to 510K. Also, the interest rate is higher in order to account for monthly FHA mortgage insurance premium. The rent amounts are conservative. Since it is newly renovated property, I think it will rent for more. I plan occupying just one bedroom. I plan on using tenant placement service. Therefore, I have included 4.2% management fees. I plan on doing property management myself once tenants are placed. Appreciate your input. This would be my first rental investment property. There is one issue with the property. There is about couple feet diameter patch of mold growth in basement foundation (unfinished basement indicating water seepage. There's also some moisture on other spot from seeping water in basement. Thank you.

https://www.biggerpockets.com/...

@Rich O'Neill Got it. Thanks!

@Rich O'Neill Is city/county tax stamps and state tax stamps same as transfer tax? If I add Philly and pa tax stamps, it is about 4.278%. Thanks!

@Tim Herman Thank you for taking time to provide feedback. As a newbie, I greatly appreciate all your insights.  The rents I used are comps in the area. The property is in College area, so students will probably be major tenants. Currently, the rents are affected due to COVID, but the college has announced plans to come back to normal activity this fall. This property can definitely rent for 5% more than I used in my calculation in normal situation (no COVID). Full college opening will depend on COVID situation in Fall. 

This property is being completely rehabbed from top to bottom except skeleton, so I was hoping to get by with lower maintenance costs. Also all Capex items are brand new. Of course, some of them will fail and need repairs. I changed maintenance and Capex to 5% each.

I used current property tax information from the city. I do anticipate property tax going up due to rehab. However, the city has property tax abatement for rehabs, which freezes property tax for next 10 years. Lets assume worst case scenario. I increased property taxes in my calculation assuming that I don't get this abatement. 

Also, I plan using tenant placement service. They charge half month rent. It comes out about 4.18% for a year. I plan on doing management myself as I want to learn.

Appreciate any additional feedback on updated calculations.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

This is rehab triplex (each unit 3b1b) in North Central Philly

Appreciate critic of the report.

@Sara Finley thanks for your comment. Since all of Philadelphia is one school district, did you mean school catchment area in the neighborhoods broken down by Mr. O’Connor? Except handful of schools, schools are not really good in Philadelphia school district. Thanks again!