All Forum Posts by: Nathan J.

Hi all,

A question on strategy for buy and hold investors. I hear some investors say they like to buy multiple properties very close to each other. The theory being that they offer quality houses and bring up the average quality of that specific area.
I am not that experienced, but I would have thought it would be better to diversify with different areas. That way your properties don't compete with each other, and you can hedge against the potential decline of one area.

What do folk think here?

Great blog. Love the transparency. Keep it up guys

I looked extensively at upstate ny. Specifically ulster county in places like kingston. I think the very high taxes and limp economy make that a really tough pace for real estate investment.

Note that actual mortgage rates are perhaps 50bp lower than what i quoted above, but i am note sure it affects the principle (or does it?)

That's very interesing @J Scott . Thanks for sharing.  Given the above theory, how would the community approach the following situation:

Assume conventional financing on a 30 yr fixed loan. Strategy is buy and hold investment on a SFH. Lets assume purchase price is around 80-120k.

Would you:
a) put down 25% and pay 4.5%
b) put down 20% and pay 4. 875%  
Note: my lender tells me its a .375% premium to use a lower downpayment.

Appreciate your insight....

Thanks everyone for the replies. That's very informative. To clarify, the market I am talking about is Philadelphia Single Family Homes. The three companies I have spoken to have that 10% plus one month rent for finding a tenant; the only exception was one that charged 7% but they had some bad reviews that put me off. If anyone wants to recommend a good PM for philly then I would love to hear. 

I would be interested in this answer also.

@Damian Baynes i have come across Onyx and Brown & Mckinney as two property managers but I havent used them yet, and i don't really have many independent reviews of them. I will likely use one/both of them unless i hear of specific recommendations

Hi Andreas, I think i visited a turnkey provider there recently (if it starts with the first 3 letters of the alphabet then it may be the same one). They showed me southwest philly. eg 2543 south carroll st. Similar kind of deal you reference above. My impression was that the areas they showed me were C- areas at best (though they told me they were B). A next door property to the one they had showed was listed by owner in good condition somewhere in the high 30s before the turnkey company bought it themselves. I assumed they did this to avoid negative comps. I felt that when you came to resell you would struggle to get the price you paid unless it was another investor. I didnt feel homeowners would pay anywhere that price. I also got the impression they were filling with section 8 tenants a lot. Meaning that eventually there would be a lot of likely turnover costs.

Hey Matt - pretty straightforward. To represent me in purchases of single family homes, or to create LLCs.

Hi fellow philly investors,

does anyone have experience & knowledge of these areas. Would you say they are solid, safe, family friendly areas. Appreciation prospects?

Thanks in advance