All Forum Posts by: Paulette Midgette

Hello All,

I have a newly renovated 1BD/1BA for rent in the Burholme section of Philadelphia.  My question to you all is, outside of Craigslist, placing a sign outside the property, and telling friends and family, where do you advertise for potential tenants?

Thanks in advance for your help and advice?

Hello @Nick M., I own a condo in the Old City section of Philadelphia.  It is located in Center City Philly surrounded by the national park historical sites, the waterfront, clubs and restaurants.  The unit is listed for sale so I am not currently renting it.  However,  I have had rentals as low as $1600 per month to as high as $1800 per month.  I have even used the unit as a Airbnb, which was quite successful.  My unit, as I believe the vast majority of units was never empty for long...it never sat empty for more than a month or two.

Real estate taxes very greatly, so you will need to assess this on a case by case basis. 

My unit condo fees recently went up about $20 bucks but this was the first increase since I have owned the building (about 10 years).  You will find that most condos include some form of utilities (mine includes water).

I found the condo investment to be very successful.  I would love to keep it, but I purchased it with an ex-boyfriend...enough said.

Please feel free to inbox me if you have any additional questions.

Hi @Jessica F.,

Consider waiting until the family has some time to process the lost of their loved one and there emotions before approaching them again.  If you are able to obtain the contact information for the descendant heirs, when approaching the be careful not to come off as an opportunist, instead of someone who cares and want to ensure the home and its memories are preserved.

Maybe the reception you received at the door was a case of the person focusing on the lost and  all the other things they needed to do with respect to the recent passing and not what they are going to do with a house.

Paulette

Hello @Nathan J.,

@Steve Babiak is correct about the redemption period for tax lien sales in Philadelphia.  Once it is all said and done on average you will need to wait 1 year before the property becomes yours.

The Sheriff Tax Sales are sold free and clear of all liens.  With that said, there is a caveat.  The Sheriff's office searches and clears the title for all properties they sell.  Now, if lets say, a construction lead is placed on the property 2 days before the tax lien sale.  This would not be caught by the Sheriff because the title search was done much earlier.  There is always a risk but what I learned from the Sheriff Sale seminars this is rare.

Also, it is advisable that you do not do any major renovations on your property until the redemption period has passed.  You much however, kept the property safe and habitable.  I would suggest you fit up enough to put a renter in temporality and do your major reno after the year has expired.  THE PREVIOUS HOLDER ONLY NEEDS TO REPAY THE PURCHASE PRICE AT WHICH YOU ACQIURED THE PROPERTY.  YOU DO NOT GET THE COST OF THE RENOVATION BACK. 

Paulette

Hell BPers,

I was chatting with my contractor a few days ago about when to put my appliances in my new reno.  I have heard of folks going into homes and stealing copper, but after he had an entire appliance package stolen from not one but two jobs, it got me to thinking about the utility of installing a security system (this is a buy an hold).

I have a relative who sells security systems so I contacted her to get some more information.  I like what I heard, and the price was not out of reach for my budget.  I decided for the area that I was in the system would not be necessary.  However, for those of you who may be investing in the rougher areas a system may of interest for you.

I am in Philadelphia but the service is available in many other states.

Please follow the link below for more information:

Vivint Home Security

Shaylola.acndirect.com

MarshayM.IBO#03412542

Hi @Tiffany Campbell, I purchased a duplex in the lawncrest neighborhood last year.  I purchased as-is, so I was able to get the property below market.  Rehab costs were low and now the property is cash flowing very well.  I often see properties that come up in Lawncrest and the Northeast move very fast.  Rents here are really good averaging $650 for a one bed/one bath. 

As many have said and I am sure you know by now, the block you purchase on will make or break.  Do your homework, walk the neighbor at different times during the day. The summer is a great time to do this because people are more active and out and about.  Look for proximity of public transportation, supermarkets, retail outlets, etc.  This is particularly important in this area because it is a significant distance from Center City Philadelphia or a shopping mall.

I like Lawncrest and am looking to buy more real estate here as well as other Northeast neighborhoods.

Good Luck.

Hi @Nicole Garner,

Some things to consider when deciding to rent or sell:

1.  Was the house passed to you via a will or was your name on the deed along with your mothers?  I find often our parents believe that the transfer of real estate is a simple matter of stating to whom they want the property to go when they pass away...never considering that it is a legal event and all transfer should be in writing and legally filed.

2.  If the property is yours free and clear (no one else can claim rights to the property) does it need work?  If yes, do you have the funds to complete the work?  if you decide to fix and rent how long will it take for you to begin turning a profit (cash flow)?

3.  If you sell, what can the proceeds of the sale help you accomplish? What would the property sell for as is...what would it sell for fixed up.

4.  Section 8 can be a good rental source. But you need to complete a certification and pass a housing inspection.  The inspections can be challenging and time consuming. So, again if the house needs work, you would have to get it done prior to going after Section 8.

5. I know the area (I worked for a number of years at U of Penn, right on the other side of the VA hospital) where your home is located is on the fringe and the homes in and around Kingsessing won't command the selling price that a house located in University City will. I believe this will change but the process is still a little slow.

6.  Students haven't made it down this far yet.  Not to say you can't attract students, but I think you would have to set the rent low to attract them.

I owned an apartment building years back at 49th and Walnut streets before University City became the hot place to be.  I did very well and would probably do even better today.  If you have any questions or need recommendations for realtors or management companies.  I have a great one and would be happy to share.

Good Luck

Hello @Michael Enriquez,  I was born and raised in Philadelphia.  My family roots are in North Philly.  I know the area well and remember what Francisville, Brewerytown, Fairmount and the Temple University (all neighborhoods in North Philly) were like before they became the next real estate hot spots (when it looked much like the Bronx).  Please feel free to send me an IM with any questions you may have specifically about North Philly. 

Also, I have posted here a lot about Philadelphia, a search on my name should pull up some additional posts that you may find interesting.

@Dmitriy Fomichenko thanks for you feedback. When I say invest in your own real estate I am only talking about partnering with yourself. I understand what a disqualified person is and what you are and are not allowed to do with self-directed IRAs. Also since I must use a custodian for these transactions the custodian would not allow me to complete any transactions that would go against the IRA regulations.

Partnering with myself has not been a problem since I am not commingling funds.  The transactions are seen as two separate entities.  Again this is why one must use a custodian to carry out these transactions.  I have done my homework, taken course, and am not using self-directed partnering with myself and others.  So far no IRS issues.

Hi @Bob Mastroianni,

I will attempt to answer your questions in the order to wrote them.

1. I also had a 401K from a previous employer that I could no longer contribute to. I rolled these funds over to a Roth IRA self-directed account a 3 months ago. So this is how it works. Once you use your IRA to purchase real estate (or make other investments, such as tax lien certificated, precious metals, and others), all monies from a buy and real sale or rental income (minus expenses) must be put back into your IRA account. If you take any of funds before the legal age that you are allowed to do so you will be penalized.

The pros, you can invest in your own real estate properties; you can partner with yourself or others. For example say you purchase a 100k property as a rental. Half of the funds come from your IRA and the other half comes from a personal savings account or bank. Let's say your net rent after expenses is $1000 per month. Each month half of the profits will go to your IRA and the other half will go to you; as you build your IRA value to can buy more or higher end properties. I have a friend who as 6 properties purchased with his self-directed IRA; you are not limited to real estate, you can use your IRA to loan money to others.

Cons, I think there are two many fees, but might just me being a little cheap; I can't withdraw the monies until I reach legal retirement age.  Outside of that I don't have any cons.

2. In order to help your investors you really need to educate yourself and develop a good working knowledge of SD IRAs.  I looked for a custodian with experience, in the business for a long time.  I wanted a custodian close to home (my friends custodian is in TX and he live ins PA), within driving distance, I want to have a personal relationship with my custodian.  Lastly, someone who would educate me.

3. My custodian is Camaplan.  There offices are 15 minutes from my home.  They offer in classroom and online course and my custodian rep is also available for questions or a meeting.  I am very happy with the relationship thus far!