Rookie looking for right neighborhoods/partners in Philly

[Jesse Harr]

Hey BP community!  I really appreciate all of the expertise and help here.

I am just starting out and am circling Philadelphia as my probable target market.  Any advice or recommendations are definitely appreciated.  Happy to do some analysis for anyone on a similar path, or help out any way I can in your deal just to start actually taking some action!  I have read, listened, saved, became a pro member and am ready to start!

Personally, I need to identify a market and need to figure out which neighborhoods match up with my plans. I will be BRRRR-ing a 2 to 3 bedroom property in a B class area. I have seen the latest BP Cash Flow analysis report showing a Philadelphia median property value of $234,000 with rent of $1795. That seems like a solid base hit for me.

      Can anyone recommend possible neighborhoods to start zooming in on?

I also intend to build my business around the Core 4 model outlined in David Greene's book and many posts. I would love to meet with any REI agents or property managers and welcome any advice there as well!

Congrats to all of you making it happen, thanks for the time, Cheers!

[Drew Sygit]

@Jesse Harr

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator.

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊