All Forum Posts by: Chris Rosenberg

You all make good points. Fishtown is definitely a hot market. I'm really going to have to just cruise every block in the neighborhoods on a Friday night and see what's what. Do you guys see port richmond eventually coming up like Fishtown has or is it too far from center city? Any other places I should research?

The property manager didn't seem to think any of these neighborhoods would have an issue as far as filling vacancies and finding quality tenants go. I think for me personally I would prefer the higher cap rates of the other neighborhoods after weighing the positives and negatives.

Thanks Rick. That was definitely helpful. So would you say the avg cap rate in Fishtown is about 6-7%? Seems a little on the low side. Is it because of the stable rental market and property appreciation?

Hello all. So these are the areas I'm interested in: Fishtown, Port Richmond, Bridesburg. I like these areas because of the low vacancies, gentrification, younger professionals moving in, and above average cap rate. I looked at Kensington but was told to stay away from it because the neighborhood is going nowhere fast. I'm looking for a duplex, triplex, or quadplex. Looking to buy something for under $200k and I'd like $900 in monthly rent for every $50k I spend. The $50k includes repairs to get the place rent ready. What do you guys think about these neighborhoods? Do you think I can find something with these numbers? I'm getting mixed answers from agents and property manager. And do you think it's better to find a place that's fully occupied or vacant? Does either situation help in my negotiations? Thanks in advance for the replies.

Chaunna, my friend actually owns a duplex in Hempstead and is thinking of buying more properties there. Is your area really too expensive for a $30,000 down payment? I was under the impression that you can pick up a sfh for under $100k and rent it out for over $2000. You can even rent out the basement if you get a house with one. Is this not the case?

Ok great. Thanks Troy. One tool I found useful for finding out what the 2014 property taxes are going to be on a particular property is the AVI calculator. http://avicalculator.phila.gov/

Thanks Troy for that in depth explanation. I actually printed your response out and highlighted a few things. Just one more question if it's not too much to ask. When you get the list of expenses from the agent before you make an offer is it pro forma numbers or all verified income and expenses from things like bank statements, tax returns, utility bills, maintenance records, vendor agreements and stuff like that?

Troy, do you have a contractor walk through the property before you make an offer? Do you just run some basic numbers and then make an offer? Once the property is under contract do you then verify the NOI and leases, rental apps, seller's tax returns, and everything else or do you do all of this before you make an offer?

I have to call your realtor this week. And you've been a big help so far.

Hello BP. I am looking to purchase my first piece of property, a small multifamily in Philadelphia. I spoke to a real estate agent today who informed me that there is no due diligence period in Philadelphia. Maybe we were using different terminology and confused each other. She says that most due diligence takes place before the offer. Once an offer is accepted there are usually several contingencies such as an inspection and mortgage contingency but it is very difficult to back out of the deal unless the property seriously fails inspection. Is this true? Properties in Philly usually don't stay on the market for more than a few days. I was under the impression that you should first do a quick check to see if the property is good and run some basic numbers to see if it cash flows and then make an offer. Once the offer is accepted you tie the property up by going into contract. During this period you do your due diligence and if you find something as small as the tenant leases are ending before you thought they were or as big as serious foundation problems then you can back out of the deal. Can anyone from the Philly area explain how the process works because now I'm really confused. Thanks in advance.

Much appreciated. I'll let you know how it goes. Thanks.