All Forum Posts by: Swetha Mandava

I'm facing the same issue now. The seller insists that it doesn't need replacement but inspector flagged it as a must-do. 

Exact words "Fuse boxes present for main services. This system creates a hazard with exposed electrical connections during fuse changes and allows overfusing which is a fire hazard. No main grounding through a rod is present with the age of this system (meter jumper cut is a potential hazard), neutrals/grounds bonded in 1 subpanel is no longer approved. Recommend evaluation for replacement by a licensed electrician." 

What did you end up doing @Joe Gemma? If you did end up replacing it, how much did it cost? 

Thank you!

https://www.rothmangordon.com/...

This seems to indicate it's even lower at 0.813 * sale price 

Thank you! I also found this tax sheet helpful https://pittsburghpa.gov/finan...

It looks like the tax assessed value changes to approximately 0.87 * sale price once the school sues you.

Thanks all for your help! :) 

What's the tax rate for Pittsburgh Alleghany? zillow seems to indicate it's 2.08% but that doesn't match other estimates

When is the property assessed for tax purposes? Tax assessment value varies widely compared to list price. Trying to gauge what's a good estimate for that

Thanks for your help :)

I'm seeing a lot of houses with diagonal rooms (instead of square or rectangle) is that normal? 
Also seeing lower/basement units with only 6ft ceilings.

How much should i deduct from rent expectation compared to more normal homes for these? 

Quote from @Stephen Kennedy:

Hey there, 

The good thing about the Philadelphia market, is you can ultimately pursue any real estate investment strategy due to our property values, tax rates and income disparity.  

Cap rates will vary depending on the demographics and asset type but depending on your risk adversity you can expect as high as 7-9 caps! 

I have mixed feelings about property managers, as i manage my own properties. I do have some recommendations for the best in the city though. 

If run efficiently, vacancy should be as little at 5%.

Management shouldnt exceed 8-9% depending on who you use here, insurance will vary depending on the asset and utilities should and or could be $0 if separately metered and water is billed to the tenants. 

Let me know if this helps or if i can be of any more assistance! 

Thanks for your estimates, theyre super helpful. I’m finding it very hard to touch 7-9 caps though - which areas do you have in mind? What kind of properties? im looking at south / west Philly at the moment and multi units < 4 

Quote from @Eric Greenberg:

Quote from @Swetha Mandava:

I don’t own any properties in point breeze but I usually use 8% for vacancy (ie 1 month a year). This is worst case for me but I like to build that buffer in.

Is operating expense CapEx + maintenance? Have you thought about snow removal, license fees, fire / sprinkler tags/checks?

That insurance could be low, but depends on what the property size is.  

I think your utilities are pretty high. Depending on the setup you can easily get away with whatever lighting needed in the common areas if there are any. Then charge a flat fee for water assuming it isn’t separately metered. 

Is everything you are looking at turn key or are you looking to add value?

for utilities I got some estimates from the seller as 500 trash + 650 fire + 1140 water + 420 electric / year

Operating expense is maintenance and cap ex that’s right 

Im looking at mostly turnkey ready to occupy properties. Which areas of Philly do you personally recommend?

How do you compare Philly to Pittsburgh? 

hi all, I'm a newbie investor based out of state. I recently lived in philly for a couple of months and loved my time there and hence decided to invest in the real estate there. This is my first real estate purchase so i'd love to get your opinions on it

I'm conflicted between purchasing multi family units (cash flow neutral) and single family homes (cash flow negative but better appreciation)

For multi units in point breeze
1. What is a reasonable cap rate? I can't get past ~4.5%
2. Any recommendations on property managers? 
3. What's a reasonable vacancy rate in this area?
4. Right now for computing cash flow, I'm estimating a vacancy rate of 6%, property management 10%, Operating expense 10%, Landlord insurance 2k/year, utilities 230/month. With these, my cash flow / cash invested is <1%. Is this normal for the area?

What are some tips that helped you the most when investing in Philly? 
Thanks in advance for helping out.