All Forum Posts by: Alex Uman

Investment Info:

Single-family residence wholesale investment.

Purchase price: $180,000
Cash invested: $80,000
Sale price: $350,000

Contributors:
Ley Nezifort

NOTE- this is an ongoing rehab in Point Breeze, Philadelphia. Less than a block from Chew Playground this house couldn't be on a more prime block in Point Breeze. With the versatility to keep it as a two story or pop the top off and build up to three, this deal was suited to a creative investor looking to get their money's worth in this ever popular area of South Philly. Congrats to @Ley Nezifort for taking this one down! After photos coming soon!

The biggest thing I always factor in for closing costs is transfer tax and the cost of title. In Philadelphia county, transfer tax is 4.28% of the original purchase price. Oftentimes you can negotiate and split the tax with the seller bringing it down to 2.14%. Outside of Philadelphia in surrounding counties (Delaware, Montgomery), transfer tax is typically 2% so only 1% when split with the seller. Title costs always vary by the subject property so I typically estimate around $1000 for that give or take.

@Will Gebbie has a good point here. I may be biased but I know plenty of investors coming down to Philly from NY to take advantage of lower prices and better policies for landlords. Feel free to reach out if you have any questions.

@Chad Hale has a good point. Watermarking your photos may be a good way to prevent scammers from taking and using them.

@Kevin M. I completely agree there are far worse policies in place and rent control wouldn't necessarily be the worst for investors if implemented with the right carve-outs. That being said, I often hear rent control as a reason why investors have shifted away from New York/to Philly instead. I think it's more a general fear of the policy that people discuss in reference to it and how it affects investor strategy.

What are local investors' thoughts on the adoption of rent control regulations in Philadelphia? I know many rental investors who have moved to the city or choose to invest here from out of state due to such regulation in other cities such as New York. Several City Council members are adamant supporters of such measures. Additionally, Mayor Kenney in the past had expressed that he is open to the idea of expanding tenant protections in the city.

How would you shift your investment strategy in the city if official rent control policies were to be implemented? Do you think such tenant friendly policies would inevitably steer investors away from our city? If you are an out of state investor, would you seek to shift your investments elsewhere?

I've seen it worth the expense for multis typically quadplexes that aren't too close to local Laundromats.

@Bryron Diaz social media is already starting to show how tech adaptability is essential to the industry.

From my google it looks like they recently ended their partnership due to COVID: https://rismedia.com/2020/05/1...

That being said, as technology advances into the real estate space I could see agents becoming more and more obsolete as tech streamlines the buying and selling process. Zillow is a great example of one such company as they have started buying and expanding their business model.

It'll be interesting to see where new tech takes the real estate world. I imagine things will look quite different in the next 5 to 10 years.

I'll message you some information on a lender I work with!