First Time House Hacking in South Philly

[Hampus Oberg]

Hi,

Me and my wife are currently renting in Bella Vista but are looking to buy a multi-unit somewhere in South Philly for house hacking as our first home purchase some time in the next couple of months. We would love to take anyone who has done something similar recently out for a cup of coffee to chat and maybe get some advice for things to consider when investing in this area + general tips & tricks for first-time landlords and how to get off to a good start with our real estate investment ambitions.

Best,

Hampus & Julia

[Robert Palladino]

Hey Hampus,

I live in the Fishtown/Old Richmond, and am currently converting my single family home into a duplex. Aside from the fact that I I previously rented rooms to cover the mortgage, This will also be my first move in investing. I can't offer much in investing experience, but it might be beneficial to chat, and keep up with one another's progress. 

One piece of advice that I can give you with regards to purchasing a multi-family in Philadelphia, it is imperative to always check that the rental license is not only active, but supports the amount of units that is currently on the property. There are many duplexes & triplexes in the city (even one's built years ago), that are not zoned for their particular use. They are only grandfathered in if the rental license has been maintained (which many are not). The quickest way to check a property's license is the the following:

1) click the link below, and enter the property address, then select the "Licenses & Inspections" tab. The renters license number will be under "Business Licenses". Copy the license number. 
https://atlas.phila.gov/#/1234%20MARKET%20ST/
If there are no licenses listed, stop right there. If there is no license, it gets a little more complicated to find out if the property supports the use, but in that event, I'd be happy to analyze that for you.

2) Once you have the license number copied, click the link below: 
https://eclipse.phila.gov/phillylmsprod/pub/lms/Default.aspx?PossePresentation=BusinessLicenseSearchByNumber&IconName=Contract_Mag.png
paste the license number in the search bar, and it will tell you how many units are supported under the rental license.

I can't emphasize how important this is. The listing agent doesn't always know, or disclose this information. I am an architect in the city, and a large portion of our client base are investors. I can't count on both hands the amount of clients that have come through our doors that purchased multi-family buildings, only to find out that they actually can't pull a permit, or get a rental license. You can most likely get it approved through a zoning variance, but it is not a quick process.

I hope this helps