All Forum Posts by: Dan Powers

@Sheryl Sitman Certainly one of the biggest factors I've noticed over the years is building a personal relationship with them not just a business. The closer you get and the better the relationship the more honest conversations you can have when it comes to scope of work, timelines, and quality of work. Obviously if you find a good contractor pay them well, if they do good work, reward them for it because finding a good contractor is as rare as gold nowadays. 

@Forrest Hayashi I agree with @Alex Uman most student have their housing picked out at least a semester in advance if not a year depending on the house. Most student rentals range anywhere from 650-800 a room, but given its Ucity you could potentially rent for even more per room. I would check out Hotpads and sort by rooms for rent, this will give you a accurate view of what students are paying for rooms as opposed to Rentometer which pulls completely different data.

@Ben Feder The Philadelphia market is one of wonders when considering neighborhoods vs the city in general. Just like @Sheryl Sitman says the city is extremely block by block, you can see ARV values change by 20/30k in the same neighborhood simply depending on the block you're on. Philly has many micro neighborhood within bigger zip codes and even neighborhoods within specific blocks.

I very much agree with @Ramon Robert Rios there is a ton of development happening Norristown, the huge 100+ unit new build, the highway extension, and the riverfront development plans. All things to come in the next few years. But, I would also say it’s more block by block then West Philly, so you have to make sure you buy on a good block. That being said there are plenty of opportunities to pick up cheap rentals with good casflow, and a few good flip opportunities for the larger 4/5 bed Victorian style homes.

@Mike Adams If your looking for a good one in the Philadelphia area I would recommend @Sean Watson Rentwell. I've had multiple investors use them for management with no negative reviews, their approach is a little different as they only charge a flat monthly fee, as opposed being based off rent. They also have recommended contractors to use on cosmetic work needed for the property and will handle evictions.

Investment Info:

Single-family residence buy & hold investment in Phila.

Purchase price: $110,000
Cash invested: $55,000

This was a classic Cobbs Creek 3/1 that was already gutted and framed out, ready for an investor to finish the work. This property was a rare one with all the mechanicals being updated, PVC piping, a full rewire, and ductwork already running throughout the house. On top of that, it was already framed out to have a huge master bathroom with a custom shower.

What made you interested in investing in this type of deal?

Every investor generally starting out doesn't want to tackle a rehab too large and just hit the cosmetics. In most cases, you're always taking a chance on the condition of the current equipment, and for flips, most buyers want new mechanicals. It's extremely rare to find a property with all-new mechanicals that truly only needs cosmetics items.

How did you find this deal and how did you negotiate it?

This deal was sourced through New Western Acquisitions and was sold on a first come first serve basis.

How did you finance this deal?

This deal was financed through Sherman Bridge Lending.

How did you add value to the deal?

My investor is going to finish all the cosmetic items in the house, as well as dry lock and clean up the basement.

What was the outcome?

The outcome is going to be a beautiful luxury 2 bed 2 bath rental property, with spacious bedrooms as opposed to 3 closet side bedrooms.

Lessons learned? Challenges?

The only challenge was on the title side, the lovely Philadelphia water department got involved and we had to have a metered installed and wait for a new reading to come in when the cycle was over. Long story short, closing got pushed back a whole month. Other than that delay it was a smooth closing.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Dan Powers - New Western Acquisitions

@Kenneth Rose I did a post on the appreciation of Philadelphia (https://www.biggerpockets.com/...) that I would check out, it highlights the hottest area being West Philly, and the demand and future predictions for value. That being said the city is extremely block by block, so you have to make sure you're on a good one.

@Anthony Giannetti Being from the Philly area I'd be curious to know which suburb this is located in. Depending on the area I would argue yes, in the more historic areas there is certainly a market for higher-end rentals, but I would need more details to make a better decision.

@Franky Aikens Yes I know my post was short notice, there will definitely be more meetups, we're planning another for November.

@Al Diaz I highly recommend @Stacia S. for staging and any other project management needs you have