All Forum Posts by: Alex Uman

Investment Info:

Single-family residence buy & hold investment in Collingdale.

Purchase price: $93,000
Cash invested: $2,500

This row-home came in great condition and was near ready to be rented out by the savvy investor looking to build their portfolio. My investor jumped on this one in an hour and is already cash-flowing while waiting to refinance out to buy the next! If you're looking to build your rental portfolio in the Philadelphia area, don't hesitate to reach out.

In Philly it all really depends on where you're looking to buy multis. I've seen investors buying properties with lower cap rates (3%-4%) in prime areas with better prospects for appreciation. You can achieve significantly higher cap rates in less desirable areas but need to be prepared to deal with slower appreciation and the potential for problem tenants and the headaches that can come with them.

Sounds like you're looking to find that sweet spot between income and appreciation which can come in very specific pockets of the city. That being said with the current market we're experiencing, you'll likely need to pay a bit of a premium as multis have become tougher to acquire in the city as of late.

Good luck in all your investing!

Tons of money has been flooding into the city from out of state investors like yourself. Lots of New Yorkers see Philly as one of the last East Coast markets with very attractive prices. Parts of the city are indistinguishable from how they looked five years ago. New construction is all over the place as old borders seem to push further out. Would highly recommend investing here if New York has gotten too complex and pricey or if you're simply looking for a new location in which to invest.

@Soniel Estime Cash is always king but you should consider hard money. Most lenders can close in <14 days if their process is right. Almost gives you as much as an advantage as cash if you waiver all other continegencies. Message me if you’d like to discuss, my lender is as good as cash and can close in a week or less.

Plenty of opportunities in all of the markets you mentioned. I may be partial but there is plenty of opportunity for both cashflow and appreciation in and around Philly. @Dave Foster is a great resource for 1031 Exchanges and has helped some of my clients facilitate them for deals I've worked on.

Good luck in wherever you decide to invest!

@Dan H. I'm in a pretty different market so I only really know about the state as being more pro tenant than landlord. Only ever heard about difficulty in the eviction process and rent control. Looking into Prop 13 that's actually pretty great to have very fixed expenses. For the investors who are familiar with the market and can afford to invest there it makes sense. I simply see my own market as similar to Ohios in having a lower cost of entry and more landlord friendly policies.

In reference to @Timothy Olaore's post I was simply thinking he'd be able to get more doors in OH for the same amount of money as in CA. Having that network local to the area would make OOS investing work well depending on your strategy.

I'd say out of state to Ohio. More bang for your buck and fewer headaches than in CA.

You could start a joint LLC to utilize for financing, split all contributions and profits 50/50. Have some sort of verbiage in your articles of formation stating its a 50/50 partnership.

I would recommend marketing it as an investment property yourself. See if you can get any offers near that $550k without an agent. If investors aren't interested and you can't get that number then go with the agent.

@Nicole H. I would recommend doing a bit of analysis on your property before making a decision on what to do with it. Ask yourself, how much could you sell it for right now? How much rehab is needed to rent it out? What value would you be able to refinance the property for when the renovation is complete? How much would you get in rent and would you be confident in the tenants you'd have in that neighborhood. If you see the headache of rehabbing and renting it out as too much for the potential profit you'd receive then maybe consider selling and finding another deal in a different neighborhood.

Feel free to reach out if you'd like to discuss. Always love discussing the profitability of deals.