All Forum Posts by: Nick Brown

Whatever the Philly market is currently losing--the PA burbs and SJ burbs are finding it. I still have a lot of first time buyers in the 25-30 y/o range looking to buy in Philly. Covid has definitely put a damper on things. As a 28 year old current Philly resident there's often times where I would like to pack up and move at least to either one of the suburbs. I suspect a nice bounce back in the city once everything is fully opened again. 

You've already completed your first step to financial freedom by building credit, saving, and getting out of debt! Now you need to get into the weeds of how to choose a REI strategy, selecting a specific market, analyzing deals, making offers, building a team (agents, wholesalers, contractors, etc). Plenty of info on here in the forums, podcasts, books. Keep learning and networking and you'll get your first deal soon enough. And DO NOT rush into your first deal until just because you feel like you have to.

Agree with everyone who is saying either get the seller to figure it out before settlement or hold money in escrow post-closing until it is resolved. Dealing with the city to get the correct zoning can be expensive and time consuming. The city can also enforce that you have to make certain improvements mainly around fire safety that will be costly. 

I work with different investors in both West Philly and Gloucester City. Both have their pros and cons. I'm personally more bullish on West Philly but I do have people who swear that Gloucester City is going to become what people said Camden would eventually become. Either way they both can have solid numbers in regards to rentals as I'm sure you found while doing analysis. Are you looking for value-add deals to turn the 3/1 1/1 into 3/2 2/1 for example? 

Obviously, this is up to you, but personally I would probably hold off on refinancing your primary to do your first investment deal. It may take you a deal or two to feel fully comfortable with what you're doing.

I vote Philadelphia. But I also live here so that may be biased. Certainly a cheaper cost of living than NYC, Chicago, DC, and Boston I would imagine. Definitely walkable and still decent employment opportunities and getting better. If I could tho, I would probably move to FL or TX 

Have been bullish on BTC and other crypto since 2015. Like others in the forum I actually used some of those ridiculous gains from the run up between 2015-2017 to put toward less risky assets like RE and index funds. Rode the wave all the way down and all the way back to where it is now. Still bullish on it and think the most recent run-up is only beginning. Just wish I bought more in the downturn!

@Tanner Kirkpatrick

Absolutely. I am only looking at value-add deals. Although this particular house hack really didn't need much, but that's just how this one shook out. Most of the deals I'm looking at need a good amount of work put into them. 

Currently house hacking in Francisville and going well. Lots of ways to find deals. I actually prefer to look thru the MLS every day and see what's out there. Every now and then a good deal pops up or you'll find one that's been sitting for a while and can make an offer where the numbers work. It might be hard for you to be "living for free" but you might find a duplex or something where you're only coming out of pocket a couple hundred bucks a month to live there.

Agree with @Kevin M. regarding the financing. The lender is going to look at everything. They'll see where this money came from and if it came from your friend it better be a gift you don't plan on repaying lol. 

If the $1250 is PITI plus repairs, vacancy, and condo fee then that's better. If not just be careful.

@Jeff Scully

Hey Jeff, I'm actually in a similar situation. From SJ/Philly but girlfriends family is from South Florida (ft lauderdale area). We were thinking of doing the same thing as you. Keep as a rental maybe long term or airbnb but also be able to utilize it when we visit her family. I think it's a fine idea as long as you have some sort of boots on the ground. For instance, maybe my girlfriends father would be able to semi help out if there was an issue or a repair that needed onsite supervision and I couldn't make it down there.

One thing I'll say is $1500 rental income on a $1250 mortgage will most definitely leave you negative in the cash flow column at the end of the day when factoring in all the other expenses. Just make sure you run your numbers properly. As for the financing side, reach out to a couple different lenders and see what options they think might be a good fit for you. 

Good luck!