All Forum Posts by: Prashant P.

You should check for which permits are required for the work you are doing.  If you are doing major renovations, you may need an engineer which will add extra costs.

I would recommend you invest in Simplisafe alarm system.  It serves to purposes.  Protects your home during construction and also gives you a way to see when contractors are coming and going.

The one thing I have learned is that you should outline in your Operating Agreement the specific roles of each partner.  You should outline which partner has the authority to make repairs/purchases and to what dollar amount.  You should also outline who, when and how will add more capital if needed.  When times get tough your partners may be reluctant to put in capital.  

At the beginning you may not consider these things because the deal might look solid.  These things will become important when issues pop up.

Did you have a contract with them?  Was the scope of work in writting?

I did this a few years ago.  I took a risk and went to house after I bought it to meet the tenants.  The tenant turned out to be a nice guy, disabled veteran.  The previous landlord just stopped pay the mortgage.  

I was able to work out a fair rent with the tenant.  The tenant always paid me.  I kept the property for about 5 years and never had any issues with him.  It was much cheaper than evicting.  

Looks great Troy.  Lets check up some time.

As other mentioned you will need to get multiple permits.  If you are in Philadelphia you will need zoning and building permits.  This process can be very time consuming.  You should hire an engineer to evaluate the building make plans per city requirements.

You will need those if the property is under a business name to file your taxes.

If you are tearing walls down you will also need an Engineer to give you signed drawings.

You should also reach out to the housing department to see what they can do for you.

You will need to make sure that the PM company has complied with all proper notices not only with local laws but also the housing department.

Sometimes it is cheaper just to give cash for keys.  This has worked for me in the past.  In my state if you evict someone with a housing voucher, it puts their voucher in jeopardy.  So they will rather move out.

Hello @Aku Kennedy.  I invest in Philadelphia.  Philadelphia is a very diverse city and even the small neighborhoods can vary block to block.  Philadelphia is also very competitive when it comes to multifamilies and rentals.

I would first get pre-approved for a mortgage and you will need at least 20% down.

For $300k, you will need to do some light rehab like painting, carpets and general maintenance.

You also need to decide what level of rental best suites you.  Do you care if it is low income or are you strictly looking for professionals.

@Yoram Ezra, I am in Philadelphia as well.  

If you are going to be doing flips, I would recommend that you become familiar with the city's permitting process and the system to get permits.  You will need to know when to get zoning, building and ez permits. For building and zoning permits, you will need stamped drawings from an engineer.  It will save you a lot of headaches.