All Forum Posts by: Paulette Midgette

@Chaim Zigelman Manayunk and Roxborough are great neighborhoods to buy in. Depending on your RE goals one neighborhood may be better than the other. Manayunk has become a magnet for Penn State graduates moving into the city for work. They tend to rent in groups so an SFH would work well in the area as well as a condo. With the bars, restaurants, and a small artist community it should be on you r list of considerations.

Roxborough is more of a working class, family oriented neighborhood.  Again a very stable area with lots of community involvement.  Again another area to keep on your list for consideration.  Roxobourgh is very close suburbs, shopping, and restaurants as well.  Lots of accessible public transportation to the city from each area.  If driving (taking the Drive) you can be in the city in 10 to 15 mins, 30 minutes by bus or train. 

Because these are not up and coming areas you won't find amazing deals here, be prepared to pay a lot more than say in Brewerytown for homes in these areas.

@Pierre Streat I have not participated in Section 8 since the mid 90's here in Philadelphia.  However, I ensure that I stay on top of what is going on in the Philadelphia market.  @Mary B. is correct in that in that Philadelphia Housing Authority (PHA) does not have a good reputation with Section 8.  It is one that is based more on how they operated 15 years or so ago instead of what they are doing today.  PHA has changed their process over the years and operate, in my opinion with much more efficiency. Interested landlords must now take a course and provide documentation of their compliance with city laws and regulationsin order to sign up for the Section 8 program.  Not only will Section 8 complete inspections prior to renting any unit, you will be subject to the inspections of Philadelphia's licensing and Inspections departments.   Sections 8 tenants are now required to contribute to the rent system.  I believe that making tenants accountable for paying  a portion of their rents makes them likely to be a little more responsible with the property.

Of course the good with Section 8 is that your rent is guaranteed.  The bad is the tenants may not be responsible for the upkeep of the property in the way they should.  But tell me how many tenants have you had that didn't take of your property that were not Section 8?  All tenants have the potential of being bad tenants no matter what there economic status is.  This is where your intuition and homework comes into play.  At the end of the day you choose who you put into your apartment. 

One thing I will share with you from my experience of renting Section 8 was that it was difficult to rent multifamily units.  The majority of potential tenants I came across were young mothers looking for 2 bedrooms.  Single family homes seems to rent faster and was more desired than MFH.

I believe you need to approach Property Managers just like you approach your tenant screenings.  If a property manager puts less effort and attention into a Section 8 tenant building than any other...run for the hills, they will suck no matter what building they are managing.

Philadelphia will require you to have a Business Privilege license to do business in the City.  I believe the price is currently around $300.00.  However, it is a one time fee.  You will also need a rental licenses ($30.00 per unit) and there is a trash collection fee of $300 per year.  If you own a multifamily unit.  If you own a Single Family unit the trash collection fee is included in your property taxes.  Yes, your property taxes for your MFH includes the city service of collecting trash...please don't ask.  Lastly, one thing I learned recently is that if you MFH has a common area lighting system (i.e., hallway light and exterior light) it must be on its own electrical box and therefore, the landlord is responsible for the common area electrical bill.

Hi @Mike Cesarano and @Troy Sheets

You all may be aware of this but I want to mention it just in case.

In PA if property managers will lease, list, promote for rent, and manage a property he or she must have a broker's license or be a salesperson under a broker.  The exception to this is if the owner hires an employee (this is what I believe you are looking for Mike) to  show the property, give tenants the rules and regulations of the property and only these types of activties the employee can act without a RE license. The employee is not allowed to enter into leases on hold tenant funds, other than funds that are held temporary and met to be given to the owner as soon as possible. 

Hello Fellow Investors.  I am looking to connect with someone who is very familiar with the LaSalle University area in Philly and student housing.  If you are a current investor of student housing or work in the area of student housing with the University, I would love to talk with you.

Hi @Chaim Zigelman I have come across this a couple of times.  The first agent was relatively new to the business and wanted to ensure that after looking at a number of homes I wouldn't walk away and buy through another agent.  She was not asking for a commission so I entered into an agreement to have as my exclusive buyer's agent.  The second agent was for a purchase in the suburbs and he explained that he was asking for a 3% commission fee from me in the event the seller did not pay him the 3% for bringing in a ready and willing buyer.  But this was only in the event the seller did not pay him, not in addition to.  I did not agree to this and did not sign the buyer agency.  The agent didn't walk away and eventually I purchased through him.

Take another look at the agreement to ensure that the language isn't written that the 3% would be due from you upon a default by the seller.  Either way I would suggest not signing an agreement such as this and a year is way too long.

As a side note, most people assume that a 6% commission is the industry standard throughout the US.  In fact, this is not the case.  It is closer to 5% and in some states it is as low as 4 %.  So I would say any commission you agree upon in a buyer's agency situation should be closer to 2-2.5%.

@Tyler Brown, you will be hard pressed to find a duplex in Philadelphia at your price point of 40k-55k that only needs cosmetic repairs and will rent for $500-$700k per unit.

While you may find a number of duplexes online at your price point they are neighborhoods well outside of the Center City District.  Homes in this price range tend to be lower income neighborhoods and the rent you can expect would probably be more of $450-$500 per unit.  And yes, expect to do a little more than a cosmetic fix up in most cases.  However, if you aren't opposed to renting Section 8 you can get a bit more in rents. 

Figure out where you want to invest, what type of tenants you want to attract, and do your research from there.  Philadelphia is a hot area right now for investors, but not all that glitters is gold.

@Max T., I recently had handrails installed at my primary residence .  The company I  used was Elegant Gallery ( 215-744-5130 Armen Kailian).  Please feel free to mention my name and ask for a discount. I had two plain cast iron handrails installed for $600.00.

With respect to a handyman, I am in the same boat as you.  However, I did find that Angie's list offers handyman packages.  For example x price for a handyman for 4 hours.  If you order a handyman package you get a free one year Angie list membership.  I am planning to purchase one of the services.

Hi @Chaim Zigelman, Bustleton is a neighborhood located in the Greater Northeast of Philadelphia.  It is close to the New Jersey/PA state line.  Yes, Bustleton is a beautiful neighborhood.  It is also a neighborhood that is very unique in Philadelphia.  The area is very suburbanized.  What I mean by that is that the homes are larger and sit on large lots.  There are no row homes in Bustleton (which is really unheard of in this city).  Singles homes make up the vast majority of the neighborhoods.  There are a good number of twins in the around and several apartment buildings and condo units. 

I haven't invested in the area because my sense is that it is a family neighborhood that does not attract many renters.  Also, the area is a 45 minute drive or so from the Center of the city.  Therefore, if you don't own a car it would take a long time to commute to the city by public transportation.

@Marc Oister, you are correct the property is adjacent to Sharswood but East of Ridge ave which puts it into a different neighborhood.  Knowing the area the rent will be in the $500-$525 dollar range.  PHA has indeed broken ground on their neighborhood revitalization for Sharswood and like the Center City areas of Philly your house will sure to benefit, but it will take some years before the benefits are seen.  Just to note, The border between Sharswood and Brewerytown starts at 27th street with Brewerytown on the West to 33rd st. and Sharswood on the East to Ridge Ave.  At least this is what is was when I was a kid...I don't believe the broaders have changed.

Hi @Sadio C., if the house doesn't need too much work you may want to consider renting it out.

Also, it is a little too late for the information but the sheriff department offer a free monthly course on how to purchase real estate at the sheriff sale.  There is a lot of useful information an investor can get out of this course, including the redemption periods.

Good luck.