All Forum Posts by: Thomas Caridi

Hi all, just a quick update after looking at a few properties on Friday. A few of them were $140k+ and still needed a lot of work, so they're off my watch list. One is listed for $57k and the contractor said it would be perfect for a full renovation, but the block has several garages (not very residential) and someone walking by mentioned the end of the block is a drug corner which I then noticed was pretty obvious. I guess it's the name of the game trying to invest in Kensington..

All in all it was a successful day in that I learned what to look for and where, so I've updated my saved search notifications on Redfin and Zillow. I'm hoping to find something I can buy and renovate for under $175k total, that way my mortgage is relatively low so I can quickly save for my next investment.

@Perry Farella wow that's a great piece of information I was unaware of. Thank you!

Thanks @Kristy Pedersen! Very helpful. I think the biggest concern for me is the holding costs if the project takes longer than expected since I'll be paying rent as well.  If I decide to move forward with the 203k loan, I'll probably try to find a cheap room to sublet to offset some of the costs.

Hi @David Baer, thanks so much for the insight, all makes perfect sense. I'm looking at a few properties near Norris Square Park with my agent and a contractor/203k consultant that lives in the neighborhood so hopefully I'll get a better idea of what's feasible then. Will keep everyone posted.

Thanks @Mauricio Botero! I also just read on the forum someone renovating a 1500 sq ft home in Philly a few years ago had estimates in the 80-120k range, so your ballpark would make sense.

Thanks @Jeremy Fisher! My girlfriend just started renting there so I've been in the area a lot lately. Definitely seems like a solid place to invest. 

Thanks Grant!

Hi all,

I've been listening to the Bigger Pockets podcast for a little while and this is my first post so I apologize if this is a repetitive topic. I'm a first time homebuyer looking into the West Kensington area of Philadelphia. I rent in Fishtown but that neighborhood is heavily developed to the point where decent 600-700 sq ft homes sell for up to $300k. I like the area around Norris Square Park (West Kensington) and prices for fixer uppers are mostly under $100k. I'm interested in the FHA 203k loan because I haven't found many turnkey homes in the area that I like, and like most millennials I don't have enough saved to put down more than 3.5%. I also think it's a great way to build some quick equity in a developing neighborhood.

The houses I'm looking at are pretty small 2 bedrooms, 650-800 sq ft max. I know the answer to this is most likely "depends", but are any contractors or investors on the forum that have 203k experience in Philly that could ballpark renovation costs for something that size? It would be my primary residence for at least a year, so I'd want it to be nicer than a standard rental rehab i.e. hardwood floors throughout (maybe bamboo to cut some of the cost), exposed brick walls, 1.5 baths, subway tile in full bath, central air/heat with exposed ductwork, rooftop deck if city approves & budget allows (not a necessity though). Something along the lines of this one: https://www.redfin.com/PA/Philadelphia/2134-E-Tuck...

Thanks in advance for any info!

Best,

Tom