Philadelphia & Delaware County Investing?

Question

Hi Everyone!

I am new to BP community and so far love it. I am a new investor with 1 single family home in the Philadelphia area.

I would love to network with some investors in the Delaware county and Philadelphia areas and learn more about how to successfully perform the BRRRR method in these areas.

Really some of the main questions I would have would be around the following:

Best areas to take a look at

How to find a great contractor that works in those areas.

I am looking to expand my portfolio and would love any help!

Thanks everyone

John

Rich O'Neill · Answer

@John Rody I had a lacrosse coach in high school named John Rhode so your name jumped out at me!

I am in Delco now looking at expanding into Philly lately. @Jimmy O'Connor has been helping me with the philly a lot and really knows his stuff. Delco has been getting tighter for what I am looking for but there are still deals to be had.

@Daniel Umstead the cash flow number is totally variable. Asking for that number is like asking what is a good deal on a car? The answer for a Toyota is totally different than a Bentley. It also varies from person to person. To me, as long as it isn't negative, I don't think there is a right answer. I shoot for $300 per door when I am all in at $75k but that doesn't always happen, especially lately.

Matt Bertsch · Answer

@John Rody Have you tried any meetups down that way. Sometimes those are a great source for finding contractors. I've actually seen contractors show up to meetups sometimes. I'd give that a try

@John L Desimone I am currently looking for flips and small multi's down your way. Would love to hear if you have anything in the pipeline.

@Daniel Umstead It depends on what you're looking for. If you're just looking to park money in real estate and depend on market appreciation over time then less cash flow wouldn't be as important to you. But if you're looking for a cashflow heavy property then you'd need to decide what kind of cash on cash return you're comfortable with and how much cashflow each month is good enough for you to accommodate any potential shifts in the market. Keep in mind, if your cash flow is very thin a local property tax increase could wipe out your profits altogether or put you into a negative cashflow situation. Best of luck!

John Rody · Answer

@Jimmy O'Connor

Thanks for the response.

So in terms of the type of renovation I would say as long as it isn’t a full gut I would be able to do it. I don’t think on my first BRRRR I would want to take that on yet.

For price range, I was hoping to learn more about raising money from either private money or hard money lenders so the price has a bit more wiggle room. But if I could cash flow $300 a month or more I would be happy with the BRRRR.

I’d love to connect further and discuss if you’re open to it.

Best

John

John L Desimone · Answer

Hey @John Rody

Welcome!

1.)The areas I see that are having the most rapid growth in terms of a buy and hold are neighborhoods like Brewerytown, Strawberry mansion, Olney and Germantown. I am also seeing a lot of activity in the far northeast and southwest Philadelphia (Kingsessing and Elmwood park)

2.)Best ways to find a good contractor would to be to connect with other investors and see if you can get a referral. I also know a few contractors in the area that have worked for a few of my clients.

3.)  I work with an exclusive group of investors to source off market inventory in Philadelphia and the surrounding suburbs and get some pretty good inventory at a high volume in the neighborhoods I mentioned above. Sheriff sales, auctions and looking for FSBO signs are always a good source as well!

Daniel Umstead · Answer

Thanks so much, that is good to know yeah I just didn't want to lowball myself on a potential deal in the future.  Thanks for providing the insight, greatly appreciated!

Daniel Umstead · Answer

Thanks so much for the insight, and looking more for the long term with apartment complexes in the near future and I am doing research on property taxes to see what to expect to overcome any hurdles.  Thanks again this is greatly appreciated!

John Rody · Answer

@Rich O'Neill

Thanks so much for the response. I’d love to connect with you and learn a bit more about your strategy. The point I am at now is definitely learning even though I do own 1 single family that I rent.

PM if you’d like to chat further

John

Daniel Umstead · Answer

Good Morning All, wanted to hop on to get some insight in regards to what is the average cashflow one should expect  and what is the lowest, I don't want to put myself in a position as I am looking for my first property that to go below the average without knowing. Thanks again for the information, will be looking to check out the referenced properties.

Jimmy O'Connor · Answer

Hey @John Rody ! Can you please provide a little more details? What is the price range you are looking into? What kind of rehab are you capable or doing? What is your realistic idea of cashflow for how much money you've invested in (assuming you pull all your money out)

John Rody · Answer

@John L Desimone

I’d love to connect!

Please PM me and we can set something up.

Best

John

Philadelphia & Delaware County Investing?

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