All Forum Posts by: Alex Uman

Investment Info:

Single-family residence wholesale investment in Phila.

Purchase price: $115,000
Cash invested: $55,000
Sale price: $220,000

NOTE- this is an ongoing rehab in West Philadelphia! One of those commonly clean deals for this area. Very clean 3bd/1.5bh that could be rented out almost as is or flipped relatively quickly adding value to the most critical points for resale (adding HVAC, finishing the basement, adding a full bathroom, etc.). My investors jumped at the opportunity to take this one down as their first flip having experience owning a few rentals. They utilized Sherman Bridge fund this one. After pics coming soon!

Investment Info:

Single-family residence buy & hold investment in Chester.

Purchase price: $40,000
Cash invested: $40,000

Many investors hear Chester and immediately pass on a deal. Location is everything in this slowly improving city less than 30 minutes from Philly. Being located North of 95 and close enough to Widener University made this vacant twin a no-brainer for my investor who jumped at the opportunity to pick this one up sight-unseen. With only moderate rehab needed to appraise at $125k, at such a low acquisition price this deal made sense to further expand his growing rental portfolio.

Hey @Eric Greenberg, this is an ongoing rehab my investor is currently working on. We projected the cost of moving the center stairs to be anywhere from $10k-$15k. His contractor told him he could likely get it done for closer to that $10k. Will know for certain and can update as this project chugs along.

Investment Info:

Single-family residence wholesale investment in Philadelphia.

Purchase price: $215,000
Cash invested: $110,000
Sale price: $425,000

Very standard 2bd/1bth center stair flip deal in prime Fishtown, Phila! Only a block from Loco Pez, my investor jumped on this opportunity to do a high end flip in one of the most desirable areas in the city! His contractor is working on a similar project nearby and was able to take this one on for a lower cost moving the center stairs and doing high end finishes throughout. After photos coming soon!

Here in Philly it all depends on the neighborhood. Distressed properties in key neighborhoods have become a hot commodity as values continue to increase in different pockets. Neighborhoods like Brewerytown and Point Breeze have experienced a significant transformation as investors have rehabbed and rebuilt distressed properties. Plenty of money to be made here if properly allocated to the right property with the right rehab.

Activity on the block is never a bad thing, especially in Philly. If the property nearby is being torn down there will likely either be a new build there soon or the land will be sold to a developer who will build on it in the future. If you have the time, why not monitor the situation and time your refinance accordingly?

@Rich O'Neill Thanks for the insight. A few investors have bought a couple Collingdale properties from me for those very reasons you mentioned. Overall a more favorable borough to invest in. I believe the zipcode also covers Colwyn borough as well. Sold three rentals there but I believe it has similar issues as Darby borough. I agree that it will likely take plenty of time to ever reach Point Breeze values though I am surprised by all of the flipping activity there as of late.

All the best!

I'd love to hear various investors' opinions on Darby. Many investors I know refuse to buy anything in Darby. Common issues making this town a no-go zone for both seasoned and new investors alike are high taxes, safety in the area and lack of longer term appreciation outlook.

That being said, other investors I work with love to buy in this area thanks to the lower acquisition costs, decently higher rents/cashflow and opportunity for guaranteed income thanks to Delco's relatively simple Section 8 program (simple in contrast to Philadelphia county where a S8 license is required). Many investors I work with have had plenty of success with the properties they have bought here in raising rents and dealing with minor maintenance issues left behind by the previous owner.

Additionally I've noticed the values in Darby keep rising as some investors are not afraid to flip houses in this area for quick profits with less work needed in rehab. I've seen a few unbelievable comps selling in the 170s, 180s and even as high as $225k! I've heard the (somewhat) tounge-in-cheek expression thrown around that "Darby is the new Point Breeze".

What are your thoughts on investing in Darby? Do you currently own any rentals in Darby, and how have they performed for you since closing? Do you write this zipcode off as a no-go zone, and if so, why? Would you ever consider flipping here? Is Darby the next Point Breeze?

@Luke Trovinger we sold this deal off market after acquiring it via the MLS. One of those standard listings which sits at too high of a price to make it a deal. We were able to successfully close cash with a price and timeline which made sense for both my investor and the seller!

If you're looking to sell tax free (via 1031 exchange), you'll need to prove you intended to rent out the property. Likely the best strategy here would be to rent and cashflow for a bit before selling in a tax advantaged manner. That being said it all depends on your overall strategy and how much you wish to make on this property. If you can sell now and still profit even with capital gains taxes then may as well do so if you don't want to pay the holding costs while filling the vacancy.