All Forum Posts by: Paulette Midgette

Hi@David K.,

I agree with the saturation of Philadelphia.  Unfortunately all this investment has driven up home prices everywhere and to be honest I am not sure if most Philadelphians can afford to buy or even rent.   I wish investment and neighborhood revitalization/stabilization could go hand in hand.  I would say that renting and Section 8 is the way to go if your are investing in Philadelphia at this time.  I don't and never have seen Philadelphia as a major flipping opportunity.

In any case I am not sure what section(s) of Philly you are concentrating on but there are some areas I can recommend that I believe will fit with your objectives.  Send a message to my inbox and I will be happy to share.

Check out Philadelphia Housing Administration website, you will find all the information you need to because Section 8 qualified.

Hi @Kane Albarron, I am not experienced with this type of issue, but here are a few things to keep in mind and questions you can approach a CPA or tax professional. 

In Philadelphia you are responsible for registering your rental unit as a business.  Which renders you subject to business, net profit, and school tax filings each year.  Therefore, you will need to figure out how to split this with your partners as well.  With this issue, it may just be a matter of estimating the tax and ensuring to set money aside in the property bank account.

With respect to your federal tax return, is it possible to issue each partner a 1099 rental profit/lose form for filing purposes based on each individuals percentage? 

Philadelphia is a tough town to maneuver when it comes to rental properties.  There are a good number of regulations and rules you need to follow.  If you know these upfront and you ensure compliance it will make your life much easier.  Especially the landlord/tenant laws and the eviction process. 

I encourage you to ensure that you know and understand all requirements for renting in the City and that you hire a property management company to represent you.  Management fees in the city are very reasonable.  If you prefer not to use a property management company think about hiring a CPA or tax professional who works in Philadelphia and has a great deal of experience with investment properties.

Paulette

Hi@Matt Burns, I grew up in North Philly (Allegheny West).  I had family members who lived in Strawberry Mansion, Brewerytown, Francisville, and the University City area.  But back then it was just know as North Philly and not too many people wanted to live in these areas outside of the ones who didn't have enough money to move elsewhere.

Therefore, take it from me when I say this.  Brewerytown is changing.  Easy access to the Parkway and Center City.  There is a lot of investment here and realtors are setting up offices to take advantage of the new interest and changing neighborhood.  The closer you are to Girard the better...this is the area that is experiencing the most change right now.  I would be caution of the areas above Ceil B. Moore Ave going towards Strawberry Mansion...still pretty rough.  The residents here aren't very tolerate of what they see as the new age folks taking over their neighborhoods.  I believe if you stay between Girard and Ceil B. Moore you will be in good shape.

Paulette

@Eismail Ismail Also, if you can't make the class in person there is a video of the seminar online you can watch.

Good Luck

@Eismail Ismail The Phialdelphia Sheriff's Department offers free classes on the hows, whats, and whens of Sheriff Sales (including foreclosures and Tax Liens the process for clearing titles are different for each type of sale).  I attend a class sometime back and it was very, very informative.  I highly suggest attending a class to get your questions answered from the horses mouth.

By the way, all tax lien sales should be delivered with free and clear titles.  The Sheriff's office conducts a title search to remove any clouds.  However, keep in mind a title search can be run and come up clear a month prior to the sale.  But there is time between the title search and day of sale for lien to pop up.  This is one reason why some purchases have liens attached.  I learned from the class if this happens the Sheriff will take care of clearing the title.

@Anthony P. do you know about the first-time buyer assistance programs in Philadelphia?  There is one that offers a grant up to $7500 if you qualify.  If you would like more information please inbox me and I will pass on the contact information.

@Account Closed, I agree with Joe White.  My boyfriend and I completed a full rehab with a contractor in Collegeville, who charged $200 per day with me buying the materials.  They way I handled the unknown was I asked for an estimate of the work hours of what could be seen and we scheduled on a price.  We agreed that any unknown that came up he would contact me or my boyfriend before doing any work.  Also, my boyfriend was on site most of the time so this helped.

Also, would you be willing to share your contractor's contact information?  I have a bathroom reno at my primary residence (it is a row in Philly so the size is probably equivalent to your bathroom).

@Jak Dadi Philadelphia 2035: The Comprehensive Plan.  Link provided below.

http://www.phila.gov/CityPlanning/plans/Pages/Phila2035.aspx

@Julie Marquez and @Laureen Youngblood, thank your for the lumber/hardware store suggestion.  I will certainly try it.