All Forum Posts by: Eric Samuels

Hey everyone,

So I have a duplex in Fishtown and I just accepted a section 8 tenant for my upstairs unit at $2483/month. The downstairs unit (1 bed/1 bath) I'm currently living in but I need to move back to Los Angeles at the end of the month. I have an option to rent to a close friend of mine but from a screening standpoint I don't know if his financials are there. My mortgage payments are currently $2,841.40/month and my property management fees are 4% (I'm striking a deal with a property manager I trust so I'm super thankful for them giving me such a low rate). The first unit needs a little work but I think I could rent for $1000/month in general and that is what I told my friend I would rent to him at.

He hasn't submitted an application because he told me he's trying pay off some overdue parking tickets and just wants to be in a better financial spot before committing. He has also mentioned that his job has been paying him late here and there. He's a driver so also stays in hotels often and isn't at home as much as other people.

One benefit of me renting to him is that I was going to leave most of my stuff in the unit to rent furnished and will grab what I am ready to take slowly. He doesn't really have too much of his own stuff given he's renting a small room somewhere else. Otherwise I'd need to move all of my stuff out immediately and most likely pay for a storage unit if I rent to someone else.

Also important note here is that I lost my W2 in January and have been applying HARD. I'm in a final round with a company but steady income has not been secured yet so if I could at least cash flow that would really help me stay afloat for the time being.

Obviously I could market the unit as-is and potentially rent to someone but won't likely be able to rent to a section 8 tenant which I was hoping for down the line.

I was considering starting off with 3-month leases with auto renew and I have been VERY clear with him that if he is unwilling to pay on time that I still am treating this as a business and am not afraid to evict him. I know that it will never get to that point but I wanted to establish that verbally.

Realistically, once I leave it's not like I'm going to be getting rent for that unit anyway so if he's late I won't really consider it the end of the world.

Would love to hear people's honest thoughts.

Thanks,

 Hi Eric,

It does look to be RM-1 and the rental license does say it's 3 units so I think I'm set, but how do you personally confirm sqft? I know on property.phila.gov you can see any property's sqft but how trusting is that? For this one it says:

Lot Size: 1,088 sqft

Improvement Area: 3,015 sq ft

Frontage: 16 ft

Which do you use to confirm in your deal analysis?

Thanks,

 Ahh got it! This confirmed the correct amount of units. Thanks!

So I'm analyzing a deal in Philly currently and I'm being told by the owner that it's a triplex but I'm only seeing two listed units on Zillow (I can't check the actual MLS since I'm not licensed). I'm of course going to ask the owner if the unit is legally a triplex and I did confirm on atlas.phila.gov that it is RM-1, which is good but wanted to see how I can confirm through online records that it indeed has 3 units and not 2. Would love the help here!

Thanks,

Hi everyone,

I’m currently house hacking a property in Philly and the basement gets very humid during the summer. I currently have a dehumidifier down there but I’m planning on moving out of Philly soon. What’s the best way to maintain a dehumidifier remotely? I’m working with a property manager who says they never use dehumidifiers for the high maintenance but shouldn’t I be worried about mold in the basement? Would love to hear people’s thoughts especially remote investors who have Philly properties.

Thanks!

Philly is definitely worth it but don't expect to just casually find a perfect deal on the MLS. You can definitely cash flow with a multi family if you do it right. The areas mentioned in South Philly aren't appreciating as much as other areas but I still think you could find good deals there. I'd recommend going on Facebook and finding off market property pages in Philly, people are constantly posting deals on there. What area in Center City did you believe was "barren"? Philly is a small city so C class areas could be right next to B/A areas.

You could also try and target MLS properties that have sat for long periods of time and try to submit a lower offer. That could also get you a deal.

Hi Malik,

I'm a fellow investor in the Philly area and I closed on my first duplex in Sept of 22 that I'm house hacking with an FHA loan. Have yet to expand and it was because of several mistakes I have made but and holding strong and learning so much. Personally, if I had the chance to do it again I would put down more money to knock off private mortgage insurance and increase my cash flow. I also chose a house that needed more work than I had hoped and I'm technically in the negative but am going to wait it out until all of the improvements have been made and the timing is right to refi out of FHA. If you're willing to get a distressed property I think overall it's a good idea but it's imperative you have a game plan for vacancy and do your research in the area to make sure you can rent out your place easily. Also might be a good idea to look into section 8 to reduce turnover as much as possible because that really is a killer over the long run.

Happy to connect and talk more about house hacking in Philly!

So I have three prospective tenants for my property in Philly who are interested in renting but one only needs a 6-month lease and the other two are fine with an annual lease. I was thinking of signing all of them into an annual lease and adding an addendum allowing the one tenant to sublet with a person I approve of. There’s also the option of having them all sign two 6-month leases but then that does provide the chance they all leave after 6 months and my unit has been vacant for quite some time so I need to recuperate. Any specific concerns with subleasing or anything else? Other suggestions are appreciated

Thanks @Caleb Brown I’ve been living in the unit upstairs but can move downstairs to the unit that needs some work. It’s just been nicer up here. I don’t have a fridge down there need to renovate the bathroom and I’ve had guests but I’m ready to move back down there and retake photos as fully vacant.

Hi everyone,

My unit 3 bed 1 bath unit in Fishtown, Philadelphia has gone unrented for waaay too long and I'm not sure how to address. I first listed it in April of last year for $1900, dropped to $1850, $1800, $1750, and finally it's at $1675 a month which is way under value. The unit appraised for $1800 a month. I even had a realtor help list it on the MLS and apparently hundreds of other sites and during that time only 3 people looked at the house and overall under 10 people have seen the house since. I have personally listed it on Zillow, Craigslist, and FB marketplace and haven't gotten many bites. I know it's the down season and things should ramp up in the next few months but I feel like I'm missing something. Here's the Zillow and FB market place listings:

https://www.facebook.com/groups/113210443918001/permalink/69...

https://www.zillow.com/b/2401-e-gordon-st-philadelphia-pa-9P...

I'm hoping to get new professional photos because the existing ones are from the previous owner and could be nicer. I'm also considering section 8 which would pay way more but I've heard that my electrical panel would need upgrading which I don't have the money to do without tenants at the moment unfortunately. - https://www.pha.phila.gov/wp-content/uploads/2023/09/HCV-SAF... (zip 19125)

Would love some opinions here.

Thanks,