All Forum Posts by: Paulette Midgette

Hello @Kofi Quaye,  In 2013/14 Philadelphia when to a new system know as Actual Value Initiative (AVI).  The AVI is the approximate value a property should sell for in Philadelphia.  The city also assess a value to the land (what the land would be worth if there were no structures on it) and for improvements (things an owner does to maintain or increase the value of their property).  These are taxable values and are used to help determine the tax rate for the property.

If you are trying to determine the taxes for a property the market value nor the other information you have found will help you.  It sounds like you went to the City's BRT website to obtain the information you have referenced here.  If I am current, go back to that site, put in the address you are researching.  Once you have the page for the property look near the top of the page, right hand side. When you see a box highlighted in yellow that reads " view the tax balance" click on it.  The link will take you to the Philadelphia Revenue Department.  Type in the address or BRT number to get the tax.

@Kevin Leslie when I am concerning investments in Philly vs.  Montco my primary focus is the potential buyer or renter.  When I am considering a flip in look in the suburbs because the vast amount of people in the suburbs are families looking to buy.  When I am concerning the City it is buy and hold because there is a large rental pool to pull from.  I find that the advantage of the suburbs is ready buyers (families, more financially situated to purchase).  Also, you can command a higher rent for the same unit sizes in the City (excluding the Center City District).  One disadvantage I found was that the vacancy between tenants were longer in the burbs.  As I stated previously the advantage to rentals in Philly that they fill up quick and tenants tend to stay longer compared to the burbs.  You also have a number of student populations to pull from, which is not as plentiful in the suburbs.  One of the things that bug me most about Philly is the dealing with municipal services.  There are aware of the problems and over the past year I have seen much progress, but there are still a number of pain points that make you want to give up the whole.  But I believe the City will continue to make slow but steady process.

I hope this response is helpful. 

Hi @Kevin Leslie, I would like to address your questions about taxes and multifamilys in Roxborough/Manayunk.   I have owned and rented SFHs in Montco County.  I also work in the county.  While Philadelphia has far more taxes than we should, I have come to a unscientific conclusion that it may all just even out with the taxes that are paid in the counties with respect to monetary amounts.  The real estate taxes in the county far exceed the RE taxes in the City.  For example,  in the City, taxes on a 200k home may be in a range of $1900 to $2100.  In the county the range could be $5100 to $5300 for a 200k home.  While you don't have the wage tax rate that we have you do have to pay for bulk and in some areas all trash pickups.  In Philadelphia, in general trash pickup in included in the RE tax.  Also, as a resident of Philly, working in the county I don't have to pay the county tax in which I work.  However, if you live in the county working in Philly there is a reduced tax that you would pay to the City.  Yes, we do have a drink tax, but it is really a  nominal amount of money.  Just something to consider when adding up the pro and cons of the taxes between counties.

Manayunk/Roxborough is one of the best markets in Philly right now.  With it's influx of newly and working college graduates.  It is trendy and as you mentioned gives you quick asses to the City and the Drive.  This makes for a sought after area and therefore you will have higher real estate prices.  I have found that Multifamily units in this area ( and most of Philly for that matter) are slow to come onto the market.  Owners tend to hold onto them a long time or pass the building down through the generations.  Reasons, there are not a lot more building on the market than you would expect.

Below is an article I came across that may give you some more insight about what is going on in the area.

http://www.nbcphiladelphia.com/news/local/Millennials-Drawn-to-Northwest-Philly-But-Will-They-Stay-259816701.html

Good Luck

@Brian Bond, Overbrook is northwest of West Philadelphia.  When you say Overbrook which area are you referring to.  I find that folks who aren't too familiar with the area confuse Overbrook (between Lancaster and Haverford Aves) with Wynnefield, which is on the other side Lancaster where St. Joes is.  I agree there are some very nice areas in Overbrook, with good purchase prices.  It is also close to the suburbs and easily assessable by public transportation.  Therefore, it gives the residence in the area additional job resources via a bus or reasonable drive.

Hi @Kay Bush,

I highly recommend Daniels HVAC. I use Mr. Daniels for all my HVAC needs.  His prices are fair but most importantly his work is of the highest quality and he is honest.  If you call him please give him my name has the referral.

Send a message to my inbox and I will give you a phone number.

Thanks @Cheryl Daniels, I will check the website for more information. Thanks@Steve Babiak as well.  I am a member of HAPCO and haven't seen any talk about water or refuse collection increase there.  Normally, these things (at least utilities hikes) get a mention on the local news station.  It is good to have forums such as this to get news that is missed through other channels.

Hi @Cheryl Daniels, thanks for the heads up on the increases.  Can you tell which utilities have of the two you mentioned has increased this year (I did receive a notice from PGW of a proposed hike) and which one will increase.  I paid my trash removal fee for 2016 and it was the same as 2015.  I have not heard of a hike in the water rates, but I don't always read the fillers that are placed in the water bill.

@Steve Babiak, you are always up to date on what in going on in Philly, have you heard of any pending increases?

Hello @Cheryl Daniels, have you done a rent comparison in the area your property is located to determine the amount of the rent increase.  I am a buy and hold investor in Philly.  One bedrooms about your size in decent neighborhoods rent in the range of $625 to $675.  Depending on where your property is located and the current shape of the property (last time property was refreshed with paint, updated appliances, cosmetic fixes, etc.) a $700 dollar a month rent may not be warranted.  If a tenant can rent a place that is newly renovated with new appliances, etc., for $700 or stay in your place that needs some TLC, which option would you take.  Sometimes apartment rent below market rate for a reason. 

I had a situation similar to yours.  I purchased a property last year with tenants in place.  A duplex.  One unit was renting for $425 per month.  Incredibly below market rate (market is $625-$675). The tenant was a 70 year old women who had been in the apartment since 1990.  The first floor tenant's rent was  $100 higher but still under market as well.  Of course a rent increase was in order.  However, the previous owner hadn't touched the apartments in years (not even a fresh coat of paint...he had inherited the property and the tenants) and everything needed to be replaced.  In order to avoid putting a hardship on the tenants, and because they were living in conditions that in my opinion did not warrant a up to market increase.  I increased each rent by $25.  Within the year the tenant vacated the one unit that was renting at $450.  I immediately renovated and modernized the unit.  I put an ad for rent on Craigslist on a Thursday.  Friday I got a call for a showing...showed it Friday evening and Saturday morning the prospective tenant submitted a rental application.  Tuesday I had a tenant paying $650 per month.  I could  have gotten more, but I did not provide a refrigerator nor is there a washer/dryer in the unit.

As landlords I understand that we want to get the maximum amount of rent we can, we need to cover our expenses and return a profit.  But we need to keep in mind that tenants pay us for a service and our first priority is to ensure the customer is being given a quality product.

The Roof Doctor.  Most honest roofers I know.  Has been my roofer for over 20 years.

Hi @Nathan J., I agree with @Irfan Raza I like Parkside, specifically the area around Parkside Ave and parts of Girard Ave and I will tell you why.  It is minutes from University City and all the innovation and expansion going on there; minutes away from boat house row and the Art Museum area... all the culture and outdoor recreation you want; minutes away from the Philadelphia Zoo, which I am betting will continue its building and expansion; within walking distance of the Mann and Memorial Hall; finally transportation, several bus routes in the area and the 76 expressway a stones throw away.

With that said it is a bit of a rough neighborhood.  But I would say if 75 - 80% of the block your potential purchase is on is good and the rest needs work, then this could make for a solid block and worth the investment.  However, I volunteer at a Charter School not too far from the address you provided and I can tell you this area has gone through an enormous change for the better. 

While it is important to understand the current state of a neighborhood it is also as equally important to gather as much information as you can about the future state of a neighborhood.  Find out what the city plans are for the area, if there are any building or expansion plans for the neighborhood assets, etc.