All Forum Posts by: Dan Powers

Where are you having this event, I'll see if member from my team can make it!

Want to hear and connect from investors, wholesaler, anyone in the space that gets off market inventory. Where have you been seeing the most consistent deal flow thats not just your typical email lists that spam you with the same deals you see posted everywhere. But deals you have signed and closed with, anyone that stands out to you.

@Marc Possoff As long as your house is in 19146 then yes.

@Marc Possoff Because 19146 encompasses many high end neighborhoods such as Devil's Pocket, Graduate Hospital, and prime Point Breeze. This is why it gets the "High Opportunity zone" grouping, but on a more granular level the Grays Ferry neighborhood has lower rents then all these areas, hence Section 8 rent being more then market rent. Hope this answers your questions

@Marc Possoff Definitely keep the house the appreciation from those projects is gonna do wonders in a few years. Because you are in that High Opportunity zone there is a significant jump in rents, and it is often higher than the market rent in many zip codes. It's the city's way of promoting growth in an area.

@Marc Possoff Grays Ferry is a very interesting pocket as there are many sides to it. A lot of the new construction you are seeing is from the buyer spree in 2021 & 2022 where people were having to pay 160-170k+ for standard row homes in Point Breeze and Grays offered a much cheaper alternative close by. There are plenty of block that are still rough you can't sugar coat that, but projects such as the Pennovation Center and the Bellwether District are set to bring tons of new jobs and value to the area. I know Bellwether is still years away but the Pennovation campus is up and running.

One thing I know not many people are aware of is the Section 8 rents you can achieve in this pocket. Once you are north of Tasker St. your Section 8 rents for 3 & 4 beds were $2453 & $2849 in per PHA in 2022 (would love an updated 2023 list if anyone has it) https://www.pha.phila.gov/wp-c.... In the current market you're able to pick up rows over there very close to 100k and you don't need to do the best of finishes to hit Section 8 standards. I think this is the perfect play for anyone looking to invest over there.

Would love to hear anyone else's thoughts!

@Lisa Talbot I'm an agent and investor in Philadelphia who specializes in investment properties. The majority of the houses in this market will be priced around 50-300k depending on the neighborhood and cashflow can range 200-500/per door again based on the area. There are plenty of properties here that easily pass the classic 1% rule. Please reach out if you want me to go into anything in more depth.

@Nikhil Bhat I work with a lot of out of state investors in the Philadelphia region, would be more than happy to point you in the right direction. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $85,000
Cash invested: $88,000

This property was located in Southwest Philly and needed a standard full gut to turn it around. My investor is turning this property into a high end rental property.

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

What made my investor interested in this deal mainly was the huge development projects coming to the area. First, is the new Amazon distribution warehouse being built down in Elmwood Park, and the other more long-term project is the new Bellwether District. Both projects are set to make huge impacts on appreciation and demand for the area.

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

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

How did you finance this deal?

This deal was bought with the use of Sherman Bridge Lending.

How did you add value to the deal?

Value is being added to this deal in the form of a full gut rehab, everything top to bottom is being done to this deal, all new mechanicals and high-end cosmetics throughout with the end goal of being a higher-end rental

What was the outcome?

The outcome is going to be a very nice rental property in a pocket primed for appreciation.

Lessons learned? Challenges?

The only challenge encountered on this file was having to deal with the water department on the property. Had to extend closing 6 weeks due to having to install a new water meter and waiting for it to run a new cycle.

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

Dan Powers - New Western

Hey, @John Donovan Norristown has a lot of promising things coming to the area and certainly, a slept-on area in terms of long-term appreciation. The 2 biggest factors going for the area are the addition of a highway exit directly into the area (https://whyy.org/articles/mont...), and the plan from Amtrack to add a new rail line to connect areas like KOP, Norristown, Pottstown, and all the way out to Reading (https://www.amtrakconnectsus.c...). Both of these plans are set to make huge impacts on the area, but there are additional local development plans in place to build up the riverfront area, and that can be seen by the new 110 mixed use building that received funding (https://www.montcopa.org/Archi...).

From my investors experience it's similar to Philly in how block by block it can so be aware of what block you're going to invest in. Anything near the center of town or the courthouse are solid areas as well. Hope this helps, please feel free to reach out to connect.