All Forum Posts by: Hilary Karaman

@Kyle Kovats Yes, essentially.  Buy with cash, do whatever work the property needs to be rentable in the price point that makes sense and take a mortgage on the property.  The idea would be that the property appraises for more than your acquisition, rehab and associated financing fees and the rental payments cover the financing payments plus. Then repeat.  

There are lots of ways to invest in real estate and I think one of the biggest thing to think about is how active or passive you want to be.  There are lots of resources here, but I'd be happy to answer questions, too.  

Welcome, @Kyle Kovats 

Yes, there are 10-yr tax abatements in Philadelphia, but these properties tend to be at a higher price point given what is needed to make them qualify.  I would suggest starting to think about what type of investor you see yourself being.  If you are thinking about rentals, the tried and true buying a property needing some work with cash, doing the work and then pulling out the equity is a good way to start making your money work for you.  

Welcome @Sita B. 

You'll definitely have much to contribute with your background in title.  Best of luck!

Welcome @Kevin A. 

There's lots of helpful information throughout this site.  As a fellow economics major, I can tell you having an analytical background has definitely helped me and makes the learning curve that much easier.

@Kenny Stewart 

Buying from the city has become increasingly difficult. You may have followed the discussion and developments over the past few years regarding the land bank and the development of rental properties in gentrifying neighborhoods.  Basically, because Philadelphia is, well, Philadelphia, there is a lot going on with power struggles in council, etc... Anyway, because of all that, there are freezes on city-owned properties that are seemingly offered for sale.  The best thing to do is figure out what district the property is in and go to that district's councilperson's office and ask for help.  

Ken,

This last project I worked on was in Francisville.  For the record, I liked the blue brick, but I was quickly voted out. Admittedly, the results on the exterior were definitely more appealing.  

@Jibu V. I do rehabs in Philadelphia and have investment properties in Turkey (I used to live there and have family there).  I work mostly Philadelphia, Montco and Bucks.  Where do you focus? 

@Scott Gombar 

As long as the numbers work, its hard to say that I'd put finite limitations on anything.  Just sold a rehab in Philadelphia purchased at $123k, put just under $100k in and sold at $345. 

Every area is different, but when I walk into a potential purchase to rehab, I count windows and doors to be replaced, account for all systems and majors (kitchen, bath, roof) that need replacement and, per condition of house, I have an idea of cost per square foot that I tack on. This checklist serves me for just about the full spectrum.   Hopefully, your local market has picked up like Philly has, but start thinking about debt servicing, holding costs... It takes time and practice to get comfortable and there is always something new to learn, but I think following a system has helped me focus and become automated so that tackling the learning curve and making adaptations is never that difficult.  

Hope that helps, 

Hilary

@Adam Schellhammer  Have you thought about buying properties that you can fix to some degree, rent out and then leverage for the next purchase?  This way you get your feet wet utilizing all of your partners, and at the same time, you'll start networking and your business will progress naturally as opportunities to wholesale, flip, hold, etc arise.

 I'm in Philadelphia, so if you needed some guidance regarding neighborhoods in/around Phila, Bucks, Montco, Delco, lmk.

Best of luck, 

Hilary

@Matthew L. 

Lots of emerging markets in Philly, but like everyone has mentioned Philadelphia is a city of neighborhoods and one block's distance can make a big difference.  Francisville, Old Kensington, Port Richmond are also areas to consider.  Some NE markets have become pretty stagnant, too, despite having lower crime rates, etc.