All Forum Posts by: Matthew Niemynski

Hey John, 

I don't think buying and renovating in this market is a bad idea given you will be living in the property (if I am understanding this correctly) as you are rehabbing. As long as the scope of work and your payments make sense, I think its a great start.

As you mentioned, it will be a great learning experience. My recommendation is to team up with a realtor who can provide you comps and data for a property you would be interested in purchasing, so you can see how homes are trading and what values they are trading at based on condition. Also, having a contractor/inspector in your back pocket always helps. 

As David mentioned, definitely plan for the worst. Things are going to go wrong and that is just part of the business. The more you plan, the better you can maneuver over obstacles. 

As far as those locations you mentioned. I work frequently in Ardmore and find properties below $500k, these prices range based on condition and comps of course. 

Would be happy to chat more.

Best of luck,

Matt

Hey Rami! 

Realtor in the Philly and surrounding suburbs area. Always looking to connect with like-minded people. 

Hi Melanie, 

Point Breeze has become a super hot pocket in the recent years due to the amount of flippers and builders pouring money into the area. Depending on the finishings and how much mechanical and engineering work the property may need, $150k may be accurate. 

I know the investors and contractors I work with, they estimate a full gut rehab including HVAC, Electrical, Roof, etc for about $85-$100 per sqft. This range does vary based on location, finishes, material prices etc. But it is a good rule of thumb. 

Hope this helps!

Matt

There is always good deals no matter what the market is doing. Investors in my network are still buying deals out here in Philadelphia and taking advantage of this slow period. Best time to plant a tree was 20 years ago, the second best time is today! Let me know how I can help, I am local to the Philly market 

 Feel free to shoot me a call or text! My contact info is in my Bio

If you are not already, join Pace Morby's Creative Real Estate Facebook Group. There are some experienced SubTo investors in there that can point you in the right direction and give you solid contacts. 

Hope this helps - Good Luck!

Hey Lauren, 

@Tyler Winget 

Can you shed some of your expertise on this? 

Tyler does tons of business with STR and knows the Philadelphia market very well. Good contact to have.

Are you open to other areas? The Poconos is not too far and can provide great returns if done right. I have tons of contacts over there if you would like some more information. 

Best of Luck!

Where are you pulling comps from? Personally, I don't trust the Zestimate as it does not pull accurate values for comps since it may not reflect improvements, mistakes in property taxes paid, or exceptions to tax assessments.

I would recommend working with an Agent who specializes in Investment Properties that can supply you accurate numbers. 

I totally agree with Brett, it is your first deal so you may not make a profit. However that second one will change your life! 

Let's Connect! I am very active in the Philadelphia market.

Hey Riccardo, 

I work with a ton of investors and many of them are looking in West and South Philly. More specifically Cobbs Creek, Point Breeze, Grays Ferry, and Girard Estates.

I personally live in Grays Ferry and never had any problems - high rents too. 

Would love to connect!

Matt

I agree with Eliott, make sure each of you know your roles and responsibility. Have a lawyer draft up the LLC and make it very clear what will happen if either of you decide to get out of the deal or future deals and how the equity of the property will be split.

Getting into business with family can either be amazing or a nightmare. Make sure you have everything in place so if things go sour, you are already a few steps ahead and have an agreement on how to proceed.