All Forum Posts by: Sheryl Sitman

Join us at Philadelphia Landlords Connect on FB to connect with other landlords .

Hey Luke. Philly investor and founder of the Philadelphia Landlords Connect group and podcast here. Feel free to reach out to me for advice on PMs in Philly. I've worked with several over the years.

@Sunil Dhar   Philly investor here and founder of Philadelphia Landlords Connect FB group and podcast.  I got into the Philly market 7 years ago and it is incredible how dynamic it is in just that short a period. You really need to understand how to analyze deals, the geography, the politics, the regulations . . . I invest in multiple markets and make very careful thought out decisions on each addition to my portfolio. Meanwhile I feel like I am watching many new investors base their decisions on a very narrow set of parameters or on the latest hype they hear from gurus. we started to help people jump the learning curve so that they don't have to spend hours - if not days and weeks - to understand the market, the property, the block, the numbers - and then find out they "wasted" their time because it is not a good opportunity or god swiped by another investor . . .  It does not surprise me you are having trouble finding something in those areas that works -- I am pretty sure you can keep looking and you are unlikely to find this magical "thing" that you think you think you are supposed to find. feel free to reach out.

@Thomas Ryan you definitely want to follow @Eric Greenberg suggestions. In Philly, you can not just leave things like that open and figure it will work out somehow. Some neighborhoods to not want multifamily, L&I is not lenient to owners who claim that they "did not know" and if you can not pull the correct rental license you will eventually have a significant problem.  We have a great Philly Landlord FB group called Philadelphia Landlords Connect for more in depth discussions.

@Ralph Richardson Interesting times to be at the start of your RE investing adventure. Some words of caution. First of all, there are many strategies and maximizing cashflow is legit and you can succeed at it if you go into it understanding the challenges and risks. Just be aware, the higher end of cashflow are the higher risk areas - tougher class of tenants, older housing stock, less appreciation. Some find a sweet spot that works for them, but that takes work and knowledge. I see people with their beautiful spreadsheets and forecasts and then reality hits - evictions, unexpected repairs, vacancies, all kinds of things you can not imagine until it happens. So get into it with your eyes wide open. We often recommend starting off with the easy stuff and always having diversity in your portfolio -- mix of risk level, geography... My very first purchase was an A class condo with stupid low ROI but it doubled its value in 8 years and I had zero headaches along the way.

@Santanu Bera lots of great advice here from good people! I am a SFH investor in Philly, surrounding suburbs, Lehigh Valley and several other non-PA markets. Just know that you may find more interesting SFHs in these markets that could be great additions to a portfolio. And that generally comes with better tenants and easier exit strategy. But everyone has the strategy that works for them. I think gurus created so much buzz around the small MF space that they inflated the prices. "Philadelphia Landlords Connect" group members have lots of experience in all Philly neighborhoods

If you do not have a rental license in Philly, it is illegal to collect rent. If you think that it is unlikely to get caught, so true - as  long as all goes perfect, it may be unlikely and you "save" $63. But if you have a violation on the property or need to evict at some point (for non payment or tenant does not vacate at end of lease or tenant violates the lease . . .) or your tenant realizes that you have no license, not only are you in some trouble, you could be required to return all of the rent that you received -- plus you will need an attorney to navigate you out of the mess.  So you may want to pay the $63 :-) There are several more steps you are required and if you do not do them all, judges will generally rule against you in any L-T dispute.

There are advantages and disadvantages to section 8. But each region is managed differently. When it is run well and tenants are held accountable and the section 8 management team is accessible and responsive, it is more likely to go smoothly - and you have guaranteed income. When it is mismanaged and lacks a system of accountability, it can be bumpy. I do it in Philly and have mixed feelings. The program is not run well at all. That means that you need to learn how to navigate it -- those who take that initiative can do fine. Those who think they can sit back and things will take care of themselves, will have unpleasant surprises. We talk about the program in Philly and the surrounding suburbs a lot in the Philadelphia Landlords Connect fb group a lot.

@Rami Khaldi in addition to the mastermind, you will find a group called "Philadelphia Landlords Connect" where info flows freely and at a high level.

I think you got some good advice here to avoid negative cashflow.  The start of this journey can be so overwhelming and intimidating - there is a lot to learn.
As the founder of the "Philadelphia Landlords Connect" group I recommend that you join if you have not already :-) You will find a good community there. There are so many ways to do this RE thing. Be prepared to make mistakes - it is a great way to learn. But also work on learning how to do things. We see many owners fumbling around with the logistics of working in Philly, with underwriting, how to get rehabs done . . . and costing themselves a lot of time and money because they jumped in without taking everything into proper consideration... Good luck and feel free to reach out!