All Forum Posts by: Alan Blitz

@Randy Lahey. Pennsylvania state law does not specify how much notice landlords or tenants must provide to end a month-to-month rental agreement, but 30 days is typical. Your rental agreement should provide this information. Further, this doesn’t sound like it is an eviction because you stated the lease is month to month, all you should need to provide is the the Pennsylvania 30-day notice to quit.

I like the idea of offering cash for keys.

Please note this is not legal advice. I am not a lawyer. You should seek proper guidance from an attorney.

Found this on a community site https://clsphila.org/services/:

Many homeowners in Philadelphia receive repeated calls, letters, and visits from “We Buy Houses” residential property wholesalers offering cash to buy their homes or other property they own. Often, these wholesalers target people who are going through financial hardship and use high-pressure tactics to convince homeowners to sign agreements to sell. They target homeowners in neighborhoods with rising home values, especially in Black and Latinx communities.

These wholesalers often offer far less than the actual value of their property. As a result, long-time homeowners lose valuable wealth and family homes are lost.

Legislation in City Council would curb the worst abuses in this industry.

This legislation would:

1. Require residential property wholesalers to provide homeowners with a Bill of Rights at least three days before a sale.
2. Require residential property wholesalers to be licensed with the City and follow a code of ethics.
3. Give homeowners important new rights when residential property wholesalers do not follow the law.
4. Create a Do Not Solicit list that homeowners can join if they do not want to receive solicitations to sell their house.
5. Assesses a fine of up to $2,000 if a wholesaler tries to get homeowners on the Do Not Solicit list to sell their home.

Not a bad thing overall to regulate an industry and create a minimum standard of ethics.

@Kyle Wilson all great advice. Just as important as starting your partnership is thinking how it will end too. Meaning that in an llc you need to spell out the terms on how it can dissolve if one party wants out, one party dies, divorces, etc.

@Michael Askew.  Philadelphia is a city of neighborhoods.  Each with it's own characteristics and price points.  Might suggest you tour the city a few times with a realtor that is familiar with the areas you might be wanting to purchase in.  There are quite a few Philadelphia based realtors on bigger pockets that know Philly really well and work with investors.

Also, the FHA loan might be just what you need. Many times your down payment can be as low as you know and most (but not all) of your closing costs and fees can be included in the loan. Just know that closing costs can not be included as part of your minimum FHA down payment. Closing costs for me have ranged in the 5 - 6.4% of the purchase price.

@Michael Askew. Focus on your credit score. Pay down high interest debt like credit cards. Do not take a HELOC to purchase the property you have in mind because this will adversely affect your credit score. Single mortgage only. If your credit score is good and you start saving like the good book "Richest Man in Babylon" suggests you will not have an issue get a pre approval lender from a bank or credit union.

Also, for what it’s worth, you might want to also look at investing in property outside Philadelphia borders.

Hi @Yuriy Grytsulyak,

Norristown has its benefits and its issues. Some blocks are better than others which is why highly recommend getting a realtor that knows the area really well.  Quite a few of the realtors that I have met are also investors in Norristown so they really know what will work for an investor.  Also, pay attention to the taxes on the property - they range from affordable to ludicrous.  One last thing, take your time finding a deal that works for you. Just make sure you have your money in order before you start.

I am estimating ARV to be around $125k based on houses sold in the last 15 months and taxes are my annual taxes are $1807. But in all honesty, I am not really concerned with the ARV currently only because I plan on holding this property for the next 15+ years so I know the land value will be higher down the road.

@Neil Henning    Hi Neil.   Thanks for reaching out.  One of these days we should start a meetup about Norristown.  The contractor started working on the property about a week or so ago (part-time while he finishes other projects) and will be there more full time starting this week or next.  Expected completion date is 1-2 months from now.  The house has good bones but needed a complete rehab due to the prior owner neglecting the house and having multiple cats.   Bought the house for around $70k and will need about $25k in materials.  I have a tenet prospect that wants to rent the property in 3 months when his lease runs out and should be able to rent the property for $1650 +/- per month when completed.   Once the property has been renovated and rented out, my plan to finance the property to pull money out for the next project.

@Kristin Kenney @Kevin M.

Hi Kristin.  I am not an expert in this field but I believe Kevin is right.  Because the use of the property is changing (from single family to rental), you will need to get zoning changed (https://business.phila.gov/media/ZoningAdminManual.pdf) and file a zoning application thru the Department of Licenses & Inspections (L&I).  If L&I denies your application, you will need to get a special exception and variance from the Zoning Board of Adjustment (https://www.phila.gov/departments/zoning-board-of-adjustment/)

When I initially responded, nothing about zoning was listed when applying for an activity license.  (https://www.phila.gov/services/permits-violations-licenses/get-a-license/business-licenses-permits-and-approvals/get-a-commercial-activity-license/).

Philadelphia never makes anything easy...

@Deschamps Etheart

Welcome to bigger pockets.