All Forum Posts by: Account Closed

@Kyron Ryals what area of Philly did you buy in?

@Jem J.

I haven't bought any investments properties yet, but plan to do the same strategy. I am working full time and in the same boat.

Has your strategy been to save up for a traditional down payment mortgage? Or do you ever use types of creative financing?

@Zachary Paul

Thanks for the feedback!

I looked into the location of the latter areas that you posted (point breeze, etc) and I'm liking the location closer to center city (compared to East Falls and Manayunk). I haven't really ventured into these areas, but have heard they can be a little bit rough.  I am planning to pick a day to drive around the neighborhoods and seeing where the good pockets are in each one of them.

@Tim DiCicco

Thanks Tim. Appreciate you reaching out.

BP podcast has been a priceless tool for me in my learning experience and I'm looking forward to the new episodes to air in 2016.

@Paulette Midgette

Thanks for the input.  I currently live in Northern Liberties right now so I can see first hand your point about the higher priced neighborhoods. With that being said I would most likely be looking in the Manayunk, East Falls or similar areas for a $200k turn key duplex.  I think that would be a sound strategy.  

You also mention a great point about getting to know the neighborhoods.  I am fairly familiar with the different Philadelphia neighborhoods but I could certainly get to know them better.  This will be one of my goals in 2016.

@Brandon Heath

I appreciate your input about your strategies. Looking forward to hearing how it goes.

@Joshua D.

Thanks for the comment.  I like your point about increasing your equity through the renovation value and using it to buy more properties. Certainly something I want to consider as I am looking at my strategy. 

Also made me think that it would be nice to buy a duplex with one side turn-key to rent out and one side in bad shape for myself to live in and possibly do a house hack as income comes in from my day job.  Then move out after a year and look at new investment possibilities.

Hey Everyone,

To start, I just wanted to list some brief information about what I am planning to do for my first property purchase. I just wanted to get some advice from the members of BP on my plan.

I will have about $25k saved for the downpayment/initial costs of my first property in 10 months. My plan currently is to pursue a duplex, triplex, or quadplex in the Philadelphia area for around $200k-250k. I am planning to do an FHA loan and live in one of the units. I would guess at this price point in Philadelphia I would be looking for a turn key duplex (not sure if I could find a turn key tri or quad for my price range).

Some issues I've encountered when I look at my plan:

I have contacted lenders and initially wanted to do an FHA renovation loan and possibly fix up the property but it seems like it is more hassle then it is worth. I was looking for about $30k in renovation loans, but the fees I was quoted on this were a little bit outrageous ($3k increase in closing costs).

Also... It seems like there are not very many triplex or quadplex properties for sale in Philly, and if they do come up they are scooped up almost immediately. 

I definitely want to pursue a buy and hold multi-family property for my first purchase. Do any other members have any advice that they could give pertaining to my current plan? I am open to considering anything.

Thanks!

-Sean

@Greg Behan I am not entirely sure yet.  Ideally I would purchase the property some time around spring or summer time and evaluate whether I would need a property manager closer to when my work really picks up in January.  I have virtually no free time during January to March with my job and ideally wouldn't want to be answering problem calls during work hours which pretty much consists of 9am to 12am or later during January to March.  

@Jordan H. I agree with you.  Also, my student loans are not too bad so the monthly payment is not a large burden on me financially.  

You make a good point about analyzing the property as a tenant.  I am going to keep that thought in mind while I look for properties.