All Forum Posts by: Sheryl Sitman

I have never done a house hack but would actually caution you that there is a lot of hype around it as an easy win. I think you might find MANY investors for whom things did not go smoothly. I am willing to bet that if at this wonderfully young age with not many responsibilities to interfere with your focus, if you dedicate time and effort to learning, you will insure your early success. The trick is to know from whom to learn. Watch out for anyone that appears too slick, claims to be some kind of guru, or makes claims or promises that sound over the top. Read, listen to lots and lots of podcasts, go to meetings, and consider getting a mentor or coach - in exchange for work or payment.

@Taoli Zhen   Wow -you clearly put a lot of thought into this, and it’s great that you already have the lot and stamped plans in hand. That said, based on what you’ve laid out, you may be underestimating how complex (and risky) it is to execute a first-time new build project solo—especially with tight margins and no prior GC experience.

A few thoughts:

1. Listing at $650K might be wishful thinking. Unless you have very strong comps or you're building in a pocket that justifies that number (and can defend it to an appraiser), banking on top-dollar pricing could backfire especially in this current dynamic economy. The newer $550K comp you mention, smaller but similarly located, makes your number feel like a stretch unless your finishes and curb appeal blow it away.

2. GCing yourself is not a small lift. Coordinating trades, permits, inspections, budget management, and timelines—especially with a full-time job—can make this a recipe for budget overruns. GCing to save money only works if you’re experienced or have strong project management support (and lots of time). Right now, it sounds like neither is fully in place.

3. A build-RRRR might make more sense—if you're thinking long-term. But even then, you need to confirm that a post-construction appraisal would actually support a $700K+ valuation to pull out enough equity. Run that by a few local lenders and appraisers before you go all-in.

Here’s my honest take: You’re on the edge of making a big commitment with a lot of moving parts you haven’t done before. If this is something you want to start doing seriously and to get good at, you will benefit from getting an experienced builder, developer, or coach involved now, - on a consulting basis for it to be serious. The right person can help you value engineer the build, avoid rookie mistakes, and pressure-test your financial assumptions before you find yourself in a hole.

If you want to be steered to someone who can help feel free to reach out. Don’t wing this alone. A few good sessions with experienced people could save you a ton of money (like finding the right contractors or making the right materials selections from the right vendors), a lot of stress and put you on your way to getting good at it.  I've seen a lot of people get burnt thinking the barrier to entry is low - it is easy for anyone to start. Not so easy to finish and remain whole.

@Breanna Bobadilla HAPCO provides a free lease to members. They are the advocacy group for small landlords in Philadelphia. There are other benefits to membership such as discounts on attorney fees for things like evictions. 

Obviously there's no perfect market, otherwise we'd all be there 😂. You want to find the markets that match your resources, your risk tolerance, your investing personality... In general, especially when starting out I would recommend trying to work in a market dowd you can drive to. Spend time learning the lay of the land - it will serve you in future investments as well. Just as important as the investment criteria you set will be your ability to form a reliable team. in some ways having that team will be more important than any other factor. Even in the best market, For example, if you have a contractor that cheats you, you're going to lose... There are enough markets within driving distance of New York City for you to choose from. Start visiting some, try to get into some meetups, talk with other investors in those areas that you choose... Philly, lehigh valley, Rochester are a few you may want to check out. They each are unique markets. Within Philadelphia and Lehigh valley, you have many sub markets, price ranges and opportunities 

You will be well served to enter into this strategy with as much knowledge possible on how to maximize rent with section 8, how to vet tenants, especially if you're going to be sharing a building with them, and to do a reality check of whether your strategy will really work. Happy to connect you with a great Philly consultant who has built a large section 8 portfolio of long-term tenants at maximum rents. Nothing can be experience in this business. Learn from others.

Make sure you are allowed to do STR - most Philly properties do not have the zoning that allows for STRs and you will be unable to get the license to upload to the STR platforms - now required for Philly properties. MTR is easier. Then the question is whether it is truly worth the effort for whatever added revenue it may give you. You need to learn the subject matter to succeed, like anything :-)

@Oliver Martinez I run a FB group pf a few thousand small landlords in Philly so Section 8 / PHA is a hot topic. For a while it seemed like many were not getting the higher end of the published fair market rent rates but as folks learn what they need to do to get those rents, more and more are succeeding. IMO it is a good opportunity for many owners and worth learning from someone with some expertise. I get an occasional consultation from colleagues who have turned section 8 rentals into a science. But keep your eye on the news and the plans for changes at HUD of course.

 Just seeing this - you can join Philadelphia Landlords Connect GROUP on FB and there are posts and lengthy discussions every day

@Jay Odulio  could you share the project that you did in Philly and/or where to see info about the program?

 Did you end up doing the program?