Getting My Feet Wet In The Low-Income Philadelphia Market

[Reco Jefferson]

Hi everyone, 

I've been lurking for a little while and feel that it's about time that I get my feet wet in the industry. As such I'd like to find someone knowledgeable that has experience either wholesaling or renting out properties with Section 8 or in low income areas. I do not have any experience in the real estate industry(software engineer by trade), but I'm willing to put in the leg work to learn what works and what doesn't. As it stands my knowledge is pretty basic, just what I've learned browsing the forums and gleaming through materials online, but I'm a quick study and want to really make an effort 

My specific areas of interest are wholesaling, buy and hold for rent purposes, and flipping once I become knowledgeable enough about the Philadelphia market. 

[Patti Robertson]

Hi @Reco Jefferson - Reach out to the HomeVestors franchisees in Phili.  They wholesale a ton of property, but also rent and flip.  I was in a mastermind with one of them and have been to your market to study the business there.  It has lots of opportunity.  I'm not sure that someone with your background would be wise starting out landlording with low income though.  Yes, it is the best return on your money, but in my experience as a property manager, most people just starting out get more traction if they start in a safer - class B - neighborhood.  You won't get the same initial return, but you will spend less on maintenance and will have more long term growth in property value. Starting out with SEC, or even worst, in a low income neighborhood without SEC 8, is like baptism by fire.  It's not for the faint of heart.  Learn a little first, and then you can make an informed decision to make the trade off for a higher initial equity position that the low income provides.  Don't think you can just pass off the problems to a property manager, because 1) very few PMs will touch low income and 2) many who do don't do it well.   I'm not trying to discourage you.  I'm just suggesting you play it a little safe until you get your feet wet, or you are liable to throw in the towel like I've seen some investors do.  The HomeVestors franchisees will be a great resource. I you don't already know them, PM me and I'll send you a phone number.