All Forum Posts by: Paulette Midgette

@Account Closed,  I agree that some mold if present doesn't mean a full gut, but depending on the mold it may need remediation.  Black mold cannot be simply removed with a bleach and water solution.  Also, mold may not be your only concern.  If the house was built before 1978 then you will have lead in the property and you may have to have it professionally remove before completing your renovations for sale or rent.

Hi @Igor Messano,  I am by no means an expert here.  I only relay this to you for your consideration.  My sister worked for the Philadelphia department of Licenses and Inspections for 20 years and this is what I have picked up about not pulling permits prior to doing any renovations or additions to a property from her and her colleagues.

1.  If you are adding walls or removing walls you need a permit.  Depending on the  electrical work  you will need a permit (i.e. running new or replacing electrical lines) and/or an inspection (i.e. upgrading or installing an electrical panel).  I believe these things would have been done to complete this small addition.

2. The PA building code requires the inspection of framing before dry wall is hung.  The City Of Philadelphia could require you tear down the structure.  Or open up walls so they can inspect studs or electrical.

3. The city could fine you.

4.  An appraiser my not include the square footage of the addition in the assessment of value.  Now the home would be worth much less.

5.  Your insurance company might not cover any defects as a result of the unpermitted addition.

I would suggest you give the City a call and talk with them about your situation.  You can always send and e-mail to 311.  I have sent a number of questions in to the City through this system and I have always received an answer within a couple of days.

Hello BPer's,

I am doing some research on investing (vacation home/summer rentals) in New Jersey.  Aside from the real estate taxes, what should I factor in?  How much should I expect to pay in homeowners insurance, flood insurance, etc.?  Understanding I would invest on the Ocean side, what is the average rent should I expect for the summer rental season.  Is there an area I should focus in on, Wildwood vs. Diamond Beach vs. North Wildwood?

Thanks in advance all for your feedback and help!

@Tyrone Lanecan you clarify your question/request.  You state that you have "two situations" what exactly are the situations?  What are you attempting to save...the properties from going to sheriff sale?  Or do you want to purchase the properties from the owner prior to them going to sheriff sale?  Also, you state that one property is a foreclosure, which leads one to believe that it as already been taken back from the bank or do you mean it is in pre-foreclosure? 

Hey @Kelly Bochna, there is a lot going on in the 19144 (Germantown) and 19119 (Mt. Airy, specifically east Mt. Airy).  I would start in these area...great community involvement, plans for commercial district revitalization Germantown...Mt. Airy commercial district is further along than Germantown, and there is a growing arts community here.  These areas are readily assess to Center City via bus routes and regional rail...minutes from major roadways (Lincoln Drive, 76, 309, and the Turnpike).  All reasons why I would suggest starting in these zip codes.

Good luck.

 Hi @Kelly Bochna, I would suggest as a first step research the city online.  Look at site like the Philadelphia planning commission, PlanPhilly, and Naked City.  Ask your fellow BPer's what neighborhoods they would recommend (based on your RE investing goals), and finally drive the neighborhoods by yourself or with someone who knows Philly. 

I recently heard a story from a Philly investor who moved here from Maryland a few years ago.  He had some money to invest. He found himself an agent and the agent was very attentive and took him out every week to view properties.  In no time this investor picked up a couple of home for 10k each, but about $50K in renovations (stainless, granite counters, etc.).  He listed the homes for rent at $1200 per month.  The problem, the neighborhood market rent was on $450.00 maximum.  He wasn't familiar with the city and his agent drove him to the places were the agent wanted to move properties. 

Best advice, do you homework, research, research before pulling the trigger.

If you search on my name it should bring up my previous posts with links and neighborhoods I would recommend. 

Good Luck

Hello @Donnell Evans, May I offer you one a piece of advice that may serve you well here.  Do your homework before coming to this forum for advice.  Not all the information given here is factual.  Section 8 can and most often will vary by State.  What works in WA or FL may not work in PA.  I know this because I am a certified Section 8 landlord.

A check of PHA's website will tell you how to became a certified landlord.  You will need to be certified as a Section 8 landlord before you can collect any rent or amend any leases.    Once you enter an Section 8 lease the lease is valid for 2 years.  After the end of the second year you can ask for a rental increase but it is not an automatic approval. 

Also, keep in mind that not all business transactions in the City of Philadelphia is a nightmare.  The City has taken great steps to improve the process of doing business with them.  From experience I can say it is improving.  Once you do your homework, I am sure you will find becoming a Section 8 certified landlord is pretty simple not the horrible drawn out impression you have.

Welcome Kelly!

Hello @Bridget Tierro, you left out a couple of exspenses.  You will need to account for the rental licenses ($50 per unit) and the annual trash collect fee of $300.

Also, you should run the numbers house hack vs. non house hack to get a good assessment of how the cash flow looks rental out all three vs renting out only two.

Hey @Richard Fields, the fee would be $300 per year total/for the entire building, not per unit.  The advantage to the fee is that one will pay $300 for a 6 unit building.  The disadvantage for someone like me who owns  duplex is that I pay the $300 fee as well, but my units will generate far less trash than the 6 unit building.  Oh well, you can't fight City Hall, at least not in Philadelphia. :-)