All Forum Posts by: Nick Brown

@Martingale Kim Demand is still high given the lower inventory of homes for sale on the market. Pair that with increasing investment and new development in NE Philly and you get the rising home prices. Rents have softened especially since covid. Wages are not really increasing in your area right now and with covid lockdowns and unemployment it's creating a softer rental market. 

@Julian Orsuto has a plethora of knowledge in the West Philly market. 

Understand this is a near impossible question to answer when we don't know the exact condition of the building. That being said I'd guess you are closer to $100k+ 

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $400,000
Cash invested: $120,000

House hacking this Philly duplex while we rent out the lower unit.

What made you interested in investing in this type of deal?

Strong cashflow and good opportunity for easy value-add reno

How did you find this deal and how did you negotiate it?

Deal was found on the MLS

How did you finance this deal?

75% LTV with commercial loan since this was placed in an LLC

How did you add value to the deal?

Negotiated a good deal to start by being the first to offer during a crazy market.

Very light reno - paint, new trim, new light fixtures, outlets/switches, keypad door locks, new stove in one unit. Some light plumbing work was needed as well as pouring concrete in the backyard to slope the water away from the foundation.

What was the outcome?

Added around another 20% in equity through negotiations and reno. Currently living in the upstairs unit with a tenant scheduled to move-in downstairs this week.

Lessons learned? Challenges?

A good deal can still be found on the MLS!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My team and I are all licensed agents and investors. We worked together to get this deal done and structure it creatively to maximize ROI.

Echoing everything @David Vitarelli just said. Only tweak I would make is .25 to .5 mile radius is too big for Philly, especially North Philly. Tone it down to .15 or even less if you can. 

Very nice! What neighborhood was this?

I knew a guy having success around the university city/powelton area with short term rentals. I'm not sure if it was AirBnB specifically or if he had his own site. I thought that was a good idea since you probably get a lot of short term stays for people who need to be close to the universities/hospital but also want an easy trek into center city/museum area, etc. 

@Matthew F. I personally would look for a value-add multifamily if you can. Market is pretty saturated right now, but you can still get a good deal if you move quickly enough when one pops up (if you're looking on MLS). If you're not comfortable with doing renovations, then what @Bill Caraker said is also a good strategy with the new construction in an improving area. 

In terms of cash flow vs. appreciation I look for both, but ideally I get 20-25% added equity thru forced appreciation off the bat with renovations and any additional appreciation over the years is an added bonus. 

Hope this helps 

@Robert M. If it's not producing great returns and you've got a solid offer on the table I'd definitely consider it. I also agree with @Zachary Paul - see how favorable you can get your side of the agreement in terms of inspections, mortgage contingency, etc. After all, they live there now so they know what they are getting and they're coming to you with this idea to purchase because they love the unit so much. 

Olde City Abstract at 16th and Spruce