All Forum Posts by: Martin Graf

Hey Dan, I've recently learned that these properties can be financed using an FHA loan. The guidelines state:

Mixed Use refers to a Property suitable for a combination of uses including any of the following: commercial, residential, retail, office or parking space. Mixed Use one-to four-unit Single Family Properties are eligible for FHA insurance, provided:

-a minimum of 51 percent of the entire building square footage is for residential use; and

-the commercial use will not affect the health and safety of the occupants of the residential Property

So it is possible, but I can't speak to how easy it is to close on a mixed-use using FHA financing.

@Percy N. - thanks for the suggestion, I wasn't sure where to even begin looking, but after doing some googling I stumbled upon Philly's zoning archive site and was able to find all of the needed documents! 

It appears the property did in fact receive a certificate of variance to operate as a three family. So, that being said, I'm still confused about the terminology. Is a three family dwelling = triplex? Or does a legal triplex have to meet additional criteria that a three family dwelling does not?

@Sherman Ragland - good advice, if I can't legally rent it out, I'm in trouble. @Korie Apgar - definitely, and agreed on separating out the heat. I need to do further research on what's available for separate HVAC units and the cost.

Hey everyone, I'm looking to put an offer in for my first deal on a triplex I recently saw in South Philadelphia. They advertised it as a triplex, but after seeing the property in person I discovered it was a three story SFH with a variance (yet to be confirmed). The property has separated gas and electric for each floor and a fire alarm system. Each floor has a kitchen, 2 bed, and 1 bath layout. My realtor thinks it will be inexpensive to put up walls to separate out each unit, which I don't disagree with, but it makes me a little nervous. My biggest concern is how the electric and gas is separated out and if I were to wall off sections of the house, I would need to guarantee the gas/electric lines contained by those walls are solely for each respective unit. I've heard horror stories of landlords having to pay a tenants electric bill for the year because one light socket ended up under their electrical meter.

Further more, the house appears to be heated from one central oil or diesel heater in the basement.

Is this a common scenario or does this sound like an expensive disaster? Any insight here would be greatly appreciated. Thanks!

Thanks @Mark Nolan !

@Tom Doherty Thanks Tom!

Hello all, I’m hoping you can clear up some confusion I have regarding mixed residential properties in Philadelphia. I often come across properties which consist of a ground level commercial space with a 1-2 BR unit above. Can these properties only be financed using a commercial loan?

Financing aside, if one were to acquire a property like this, what types of obstacles should be expected in attempting to convert the commercial space into a residential unit? I imagine this involves several variables, most notably zoning.

Are potential deals like this worth it?

Thanks @John Mathewson, and will do!

@Gerardo Dominguez Thanks! I actually just recently went to a local REIA meetup for the first time and found it to be very valuable.

Hey there BP community, Martin Graf here. I was born and raised in South Jersey in the Cherry Hill area, and I now currently reside in Philly. My educational background is in Computer Science and since completing my degree, I've been working full time as a Web Developer. I've always had an interest in REI and I'm finally taking the steps to begin my investing journey.

I've been a BP member for close to two months now and have been excitedly reading and consuming as much of the content the site has to offer. I've found the weekly webinars, forum posts, and of course the BP podcast to be extremely helpful in getting up to speed on REI analysis and strategy.

The main goal I’m pursuing this year is completing my first deal and closing on a MFH in Philadelphia that provides good cash flow. I plan on utilizing an owner occupy strategy while learning the ropes at being a landlord.

I am looking forward to further learning and growing within this awesome community!