All Forum Posts by: Dan Powers

Hey @Roman Melnyk, I've had a good amount of experience flipping in the Clifton Heights area. When I acquired them they were all supposed to be sold at 70-75% and they all hit that mark so I was happy with the return. I've seen a good amount 3 bed rentals in Clifton Heights rent for $1500, but also surrounding areas like Aldan. But I have to agree with @Rich O'Neill the surrounding areas of Glenolden and Collindale are really good for rentals but it does boil down to your level of comfortability for dealing with tenants. 

But for multis overall in Delco I've had and seen great success, while the taxes might be higher, for the higher purchase price properties its sometimes made up in the transfer tax for that year as its 1/2 of philly. Also, the majority of the multis ive seen move have not needed major for done to them, simply cosmetic stuff such as paint and carpets, really livening the place up goes a long way especially to get market value tenants in there. 

@Eli B. in regards to your statement about cash flowing. For a SFH analyzing the cashflow if not the best metric. Generally cashflow is good for a duplex and up, while cap rate is a better metric for really a triplex and up.

Dan Powers - Real Estate Agent

Hey @Bennett Schwartz, you are preaching to the choir my man. While finding a multi of that size in Philly is certainly not impossible, I often compare it to finding a unicorn. The majority of those properties tend to be sold in a matter of hrs, and are held onto for generations which is why it is such a rarity. Not to mention the high premium they demand. Honestly it's not worth your time to find a high priced multis when you could easily find one in Delaware County with the same if not better returns at a fraction of the price, and 1/2 the headache. 

There are many pockets in Delco where you can find multis, it all boils down to how much cash (or approved hard money) you have, and your comfortability with areas/tenants. The area with the most inventory of multis is Darby. That being said I won't sugar coat it, its not he best area but its certainly not the worst, there's plenty of data to support the investment and growth of the area, and why its been such a popular place for investors recently.

Besides Darby, there are plenty of other areas for multis all over Delco. Folcroft, Sharron Hill, Collindale, Glenolden, Lansdowne, Yeadon, Aldan, Folsom, Ridley Park, Woodlyn, Morton, Clifton Heights, are all areas where you will see multis come up. The benefit of getting a multi in Delco is reduction in price over that in the city. While the price will be lower, the rents will still make it very worth your while in terms of cash flowing and refinancing out. Not to mention the transfer tax is 1/2 compared to Philly. 

If you have any more questions I can certainly provide more insight, and would love to converse more.

Dan Powers - Real Estate Agent

Hey @Kristy Pedersen I wanted to congratulate you on your successful flip and compliment you on a great rehab. As a philly native I can say you definitely got into Brewerytown at the right time and it paid off for you, that area has been steadily on the rise as money from Fairmount is pushing up. @Ryan D. Fishtown is a fantastic area where they're will be appreciation for years to come. The decision to to flip soon or hold onto for appreciation purposes is really up to you and how soon you want to make a return on your investment. Fishtown is in such demand that inventory is extremely hard to come by and when it does it gets snatched up very quickly. Honestly even holding on to the property for just another year will pay off massively instead of selling within the next couple months.

Hey @Jeffrey Morel, I have come across some people saying that as well. I do not try to involve myself with those matters I simply focus on doing business. If a person loves a property and you both know its the one for them and their only reason is holding out because of the election I would disagree with them on that decision. Everyone always says "if the numbers make sense" but people come up with a million and one reason why to not pull the trigger when the time comes. I agree with @Russell Brazil that people let their political views influence their investing decision, and you could simply analyze the data behind any investment to come to a decision on your own.

Hey @Christopher Wilchensky welcome to the community and the Philadelphia market. Looks like your off to a great start connecting with @Ray Realdine. I grew up around the philly area, and also attended school around here as well, so I've gotten the chance to see how the city has changed over the years. As you might have heard philly is very block by block with even the best neighborhoods having worse areas, while you can find gems in the bad areas. Being a local I can definitely answer any questions at all about the city. Would love to help you get your feet wet. 

Dan Powers, Real Estate Agent

Hey @Ralph Patulot welcome to the Philly market, those areas you mentioned (Whitman, Greys Ferry, PB, and Port Richmond) are very nice areas and definitely great places to live. But in my opinion the house south philly market has really hit the ceiling in terms on near future appreciation. Obviously the popularity of the area will cause constant annual appreciation, but the boom in that area peaked 3 years ago. On top of that, like @Alex Uman said its more of a flip market as opposed to rentals due to the high entry price. You could look in areas like Fishtown and olde kensington but has already happened and now inventory is extremely limited. Philly is in a weird stage right now where its waiting to see which area pops off next. If your looking to house hack I would say go to a nicer section in brewerytown. Your getting wealth pushing up from the south and it's trickling over and it's evident by the new construction in the area.

Hey @Matthew F. welcome to the market. Each area of Philadelphia has its own strategy and price point so any level of investor can find a pocket they like. It all depends on your price point and investment strategies. The majority of Philadelphia deals typically sell around 70-75% ARV.

I would say the hottest areas for appreciation and cashflow currently are the fishtown, northern liberties, and olde kensington. There is an endless supply of new construction on every block that will certainly increase in value for the years to come. Due to the high demand though inventory is limited and anything that you do find there you should certainly jump on as it will get scooped up quickly by the big sharks.

Areas like south philly are greater for flips then rentals due to the higher entry price but higher ARVs. You can see a 2 story go for 400-425k while a 3 story roof deck will get 500k+.  West philly is an area where the entry price is far less then fishtown/south philly, but you have the option of either flipping or renting. Philadelphia as a whole is very block by block and that is most evident in wets philly. Some blocks are amazing (no trash, trees, etc.) and the next block over is significantly worse.

Northwest Philly (west oak lane, germantown, mt airy,) is an area thats nicer then west philly but still cheaper than south. This pocket is also great for the multitude of strategies that can be played out here. 

If your looking for multi units, Delaware county is the way to go. Finding a nice multi in the city is like finding a unicorn, but the inventory in Delco for multis is plentiful. The entry price is significantly lower and the cashflow is sufficient.

One thing to watch out for in the city is the transfer tax. Everyone talks about how the taxes are cheap and yes that is true, but sometimes that can be offset by the 4% transfer tax that occurs on each transaction.

Always looking to expand my network and knowledge, reach out if you have any more questions.

Dan Powers

Hi @Darcy Reynolds I would have to say the most important things to look out for when interviewing brokers is how are they going to help you succeed in your career. I wouldn't solely focus on the broker when interviewing I would also focus on the rest of the team and see if they help grow and mold you. Are your coworkers willing to help you through the difficult times that everyone faces? I focused on the team atmosphere that the office had, the mentality of "your only as strong as your weakest link". Will the rest of the team help you succeed when you are down, or will they stab you in the back when you're not looking.

Would love to share my experiences in the industry if you have any more questions.

Hey @Kevin M. one area I would explore that you might already be utilizing are facebook groups. There are plenty of groups if you simply search Philadelphia apartments, those groups have 25k+ people in them, and are all generally pretty active. I connect with a lot of people through there with good honest posts, and simply getting your name out there.

Hi @Lauren Hogan and welcome to the community, Philadelphia is a great area to invest in for a multitude of reason.

1. The range of opportunities varies greatly all over the city. Philly has a diverse spread of areas with different exit strategies for each pocket. The city is very block by block as you've probably heard, the best pockets have bad areas and the bad pockets have great areas.

2. As many people have mentioned the taxes in the city are extremely low, but I have to say that is offset sometimes by the 4% transfer tax which is based off the purchase price.

3. The overall entry price and margins compared to other east coast cities. Over the last couple months I have noticed an influx of out of state investors from New York, Florida, Georgia, and DC flocking to Philly. When asking why, the New Yorkers say the entry price in Philly is far less than NY, and the southern investors say the margins in the city are much better than down south. You can easily find a property in Philly selling at 70-75% of ARV.

Always looking to meet new people, feel free to reach out.