All Forum Posts by: Mike Girard

This has doubtlessly been covered all over the place, but most of the posts I've read on alternative financing apply to different situations than mine. 

Though my credit rating is good, I don't meet the income requirements for getting a mortgage.  I retired when I lost my job a couple years ago (I'm 56 in a field where age is real barrier) and have not generated much in income from investments. 

I would like to invest in Philadelphia -- I live in NYC right now -- and I am inclined toward getting a multi-family property in which I would live and which would produce income with one or two other units. 

I am not looking to get rich, but I would like to be generating around 50,000 or more in annual income in a few years. Ideally, after two years of producing rental income I will be able to finance other properties by traditional means. 

Here are my questions: 

1. First of all, am I correct in assuming that I won't be able to get a mortgage even if I find a property that is almost certain to generate enough income to cover it?

2. I would like to be able to qualify for a mortgage on other properties after a couple years of real-estate produced income. How much income will I need to produce and is this even feasible?

3. How limiting is seller-financing on choice of property and location? Is seller-financing readily available with multi-family units?

4. What is the best kind of alternative loan? Borrowing from friends and family is not an option.

5. Is paying cash ever a good idea? I am thinking perhaps if I buy a fixer-upper I can retain a little more leverage for other investments. I would have to pay someone to do the renovations.

6. I am quite happy to partner with someone who can get a mortgage, but I don't know the first thing about finding a partner I can trust and work with nor how long it takes. This option seems to have a lot of risk.

Sincere apologies if all of this has been covered again and again.  Perhaps having all these questions answered comprehensively will be useful to other forum users. 

Thanks. Brian. You're the second person to recommend West Philly to me. 

I am still very much at the start of the learning curve, but I'm fairly sure I want to become a Buy and Hold investor -- the rest is too abstract for me -- and that I will likely live in my first property, in part so I can qualify for the homeowner advantages.

I don't live in Philly so will be traveling frequently from my home in Brooklyn over the next several months to get the lay of the land. Can anyone recommend a neighborhood where the cap rates are likely to be favorable that is also some place where I would like to live? I like relatively safe urban neighborhoods with good access to transit and a high walkability quotient. I live in Park Slope in Brooklyn -- where I can't afford to invest -- and if you know the neighborhood, you know I'm spoiled. But I'm also flexible, which is good, because I have to be. 

You read my mind. I'm going to start networking as I ride the learning curve -- including making some trips to Philly --  and was just wondering where to start. I really appreciate how ready Bigger Pockets members are to help and hope I'm able to return the favor at some point, when I actually know what I'm doing. 

 Any tips on where to buy in Philly? 

I'm priced out. 

Thanks Kevin and Antoine! Helpful info. You guys are fast. 

Antoine: I keep hearing landlords say that working class and low-end professional neighborhoods are good investments. I am going to make a trip to Philly soon just to look it over. Any places I should definitely visit? Any idea what the next Fishtown is going to be? A couple of places in South Philly still looked relatively affordable. I would like to stay at 250k and under. 

I would be quite happy to find places that would appreciate slowly but where the rent is likely to be stable or increase. For the unit I might live in, would prefer a neighborhood with that famous Philly high walkability quotient and access to public transport. 

I am a new investor, planning to buy multi-family housing to generate rental income. I live in New York, which means there are no really great markets near me. 

Can you talk about the pros and cons of buying in locations far from home? Is this something a newbie should ever consider? 

Hi --

I live in Brooklyn. The New York market is just not going to work for me, so I am looking to buy property for rental income in Philadelphia. I've picked Philly only because the conventional wisdom is that your first investments should be close to home.  Pittsburgh looks to be the better prospect, but it's a good bit farther, though having lived there, I know the area better than I know Philly.

I am looking to connect with:

• New Yorkers who are investing in Philadelphia
• New Yorkers who are investing in Pittsburgh
• Local investors in Philadelphia
• Local investors in Pittsburgh
• Anyone else who thinks connecting with me would be mutually beneficial

Looking forward to exchanging info. Thanks.

Hi --

I am a New Yorker looking to invest in Philly because cheaper and close. I am looking for multi-family units. 

I would like to make my first purchase as soon as possible. I have read over the Bigger Pockets Guide and a lot of its recommendations seems very involved and time-consuming. My preference would be to draw up a business plan, purchase a property relatively soon, and do all the non-essential business-y stuff -- website, accountant etc -- once I've decided investment real estate is definitely something I want to throw myself into. 

Can anyone just boil down the bare minimum I need to know/do to buy a multi-family unit in Philly without flying blind and losing my shirt? 

Also, I may opt to live in this unit, if only temporarily, while I purchase other properties. How long do you have to live in your multi-family to qualify for government goodies? 

What neighborhoods should I be looking at? Northern Liberties, Fishtown and Pennsport all look fairly good from a distance. I would prefer to rent out properties that I would live in, which means I will not buy in high-crime areas.