All Forum Posts by: Garrett M.

Hi @Michael Enriquez! I think Philadelphia is a brilliant place to invest and all of the neighborhoods mentioned in this thread have better sections. South Kensington is a bit more established because its closer to fishtown and northern liberties which are both expensive at this point as far as ROI is concerned.

I would be concerned for you though as an out of area investor to buy the cheapest houses in the most run down areas. I think you'll have a problem attracting responsible tenants in neighborhoods with so much blight. And tenant hassles for out of area landlords are that much more stressful and expensive. Even with property management. From vacancy to evictions to property damage, tenant difficulties means lost income. I just think the risk is too great when buying the cheapest houses in blown out areas. I think you may want to tour a few of the areas you are considering after getting more feedback on neighborhoods. it really is block by block. Look for places close to transportation like train and subway stations and close to a commercial corridor. 

You may also want to look into offering section 8 housing. There is a great demand for it and it supposedly streamlines your tenant issues because the state pays a portion of your rent. 

I would consider Germantown, Mt. Airy, Olney, Strawberry Mansion or far north Brewerytown and  Mantua in West Philly. But to be honest it may be hard to buy for under 25k in anything but the most run down areas. 

Best of luck---

Hi @Zachary Singer,

fishtown is saturated with investors. You'd do better in neighborhoods that havent seen as much gentrification yet. I like Mantua, east mt airy, port richmond, bridesburg. I've heard overbrook can be good and I'm looking into allegheny west and olney.

Welcome to BP!

Garrett

Welcome @Katie Heer!

BP is such a great resource for new investors. I would have probably never had the courage to get my first deal done without the education and personal connections that Bigger Pockets presented. You will do great. Cheers!

I am going to be quick here and lay out the basics.

Large SFH property in good condition in a highly desirable part of Philadelphia.

Purchase price 150 K

Rehab cost 75K

Anticipated ARV of 300

I am looking for a money partner to help me fund the offer. I have half the money. Will split the deal with the right person. I have done one flip and hold using the BRRRR technique and so far so good. I am looking for someone who enjoys real estate like I do. I enjoy problem solving on a budget and appreciate a clean, simple design aesthetic. I want to provide a quality product in the end and I don't like to cut corners. This house is in really good shape overall. I think this project will be lucrative and a lot of fun.

I have a contractor that I worked with on my first deal that I would be pleased to use again, but I'm open to using someone else who is vetted. Please get in touch if this sounds interesting to you. Ill be happy to talk with you in more detail. Cheers!

Hello @Joe S.

Here's what I wonder about doing cashflow analysis when you are using a 3.5% down payment... I know that cashflow is cashflow, so I agree that at first glance it doesn't pencil out. But I think the LOW down payment you pay (compared to the 20% down any non-FHA investor pays) may skew your analysis. Potentially taking an awesome advantage of the insanely low down payment and letting it seem like a disadvantage when you count your cashflow. I would analyze it by asking if it looks like a good deal to other investors paying 20% down. Their larger down payment means a smaller monthly debt service, and more cashflow, but the value is still there. That being said it does look a bit thin on a property priced that low.

Anybody else have thoughts on this? Best of luck to you!

Thanks @Jerry Padilla!

Hi @Jerry Padilla,  Thanks for this great post. 

I have a follow up question for you on this. I am in a situation where I purchased an investment property in my LLC, and regret it because I am not eligible for conventional refinancing now. It was purchased over 6 months ago and I am ready to refi out after rehab. But I've been told I would be responsible to pay a 4% transfer tax if I want to put the property in my own name. Does the scenario you are describing alleviate any of that transfer cost? Or do you know of an affordable way to do this? Thanks! I always enjoy your posts.

Hello @Amy C.,

I would recommend Joseph Spina, CPA in Fairmount. He is an active investor and runs a property management arm too. 

I am also looking for a good RE lawyer! Please let us know if you find one.

Cheers!

Hi @Alex M.,

I've just started working with an insurance office in Philly that represents 14 or more different insurance carriers. I suppose that makes them an insurance brokerage. The agency is Walt Humphries, 215-646-5633. I don't have a policy yet but I am pleased with their breadth of coverages and their local knowledge.

Hope this is still pertinent. Best of luck with it.

I'm in a similar situation. I'm going to be 20k over budget on my rental renovation also. I plan on doing a cash out refi. To pay off as much of the credit card debt as possible. Then paying as much as I can each month on the 0% card. I'd say refi now because rates are so low. You can always refi later if rates stay low or your value climbs once that shopping center goes in.