Requesting Info Please: Philadelphia multi family/ house hack

[Brian Silverman]

Hello Everyone,

My name is Brian, I am new to the forum. Looking for info on investing in a multi family property to house hack in Philadelphia. Goal is to be able to have the tenants cover all expenses and live in one of the units. What are some good neighborhoods to look into that are safe? I have noticed on realtor.com that decent properties are around 300k. Looking for a more turn key or light repairs. Any info is appreciated. Thank you in advance.

[Richard Jahnle]

@Brian Silverman - If your criteria is to find a multifamily property that

1) Allows you to occupy the property and have a tenants cover all expenses

2) Is in a safe neighborhood in Philadelphia

3) Has a purchase price of around $300K

4) is a turn key or just in need of light repairs

(I am also going to assume that you will use an FHA loan, and will put 3.5% down. I think your best shot to pull off all the)

One possible way to at least come close to pulling that off would be to find a property like this:

https://www.redfin.com/PA/Philadelphia/105-Seville...

This property is in a safe area, has a listed price of around $300,000, and looks like it is in good condition. If you got a place like this for around $300,000, your fixed monthly costs would be your mortgage payment (~$2,000) and Water/Garbage (~$100) for a total of $2,100. You could manage the property yourself to eliminate property management costs.

You could live in the one of the bedrooms of the 3 bedroom unit and rent out the other 2 bedrooms to friends or people you found on Craigslist for $600 a room. Those tenants could also help by splitting the other utilities of the 3 bedroom (gas/cable/internet). Then you could rent out the 1-bedroom for $900. That brings your total income to $2,100, covering all of your fixed costs. 

This does not account for variable expenses (repairs, capital expenditures, vacancy) which can quickly cut into your income if you cannot keep the property rented (vacancy) or increase your expenses if the property ends up needing repairs.

Good luck with your investing!