All Forum Posts by: Jamal Pitts

Does anybody know of a title company that would insure a property purchased at the Philadelphia Sherriff tax sale?

@Terry Scott

Congrats on your current success, hopefully we can do so business in the future.

Hi Mary,

What makes you think you wouldn't get 100% of the rent?

Hi Andreas,

I’m pretty familiar with this area. Compared to other parts of West Philly, I would classify this location as C. One of my investor clients flipped a house on the 5900 block of Media Street in 2008 for 118k and I flipped a house on the 1700 block of N 60th St for 115k in 2011. Values in this area have been stable for renovated homes over the last couple of years. If you are looking to rent and then sale in five years, if values stay the same you would be looking at a sales price of 80k – 90k considering 5 year wear and tear on the property from the tenants. It probably wouldn’t classify as a renovated home considering if you didn’t do any updates within the 5 year period. Rents in the area range from $750 -$850. You can possibly get $950 if you section 8 the property. I’m currently in the process of buying a property on 57th street about 10 blocks from your property in a more inferior location. The options I’m looking at with this property is option

(1) whole sale it for around 20-25k
(2) renovate and resale for around 99k.
(3) rent to own for $850 - $950 for a year then sale for 99k.

Good luck with your deal.

figure out how much one bedroom apartments rent for in the area and discount your rent by 10% or offer 1st month free.

@Michael Hanley I'm having the same problem. Every offer I put in on a property this year I didn't get. Some offers have been more then the asking price. Have you checked out the DIG investment meetings in Fort Washington? It's a good networking place to find deals and meet with other local investors.

From the numbers you provided, you are making $1,800 a year from this property. If you have two months or more in vacancy or a major repair needed you are screwed!!! I recommend putting all your profit in an account for emergency reserves, you are going to need it eventually.

Look into a FHA 203k loan. This will give you the money for the purchase and the rehab. The banks will determine the loan amount based off the after repair value of the property.

With all of my 1 unit apartments the tenants are mostly young single working professionals. I seem to get less wear and tear in these apartments too. But it really depends on the location

Did u try selling it on assignment to another investor?