All Forum Posts by: Ammar Muhammad

I think it depends on how much money you will have saved in 2023 for your second investment property.

Anyways congrats on your first rental and good luck

@Sam Shapiro-Kline I am actually trying to do something similar. My time horizon is longer though. probably in one or two years. Would love to know what you ended up getting in terms of area and property. 

I personally would stay out of greys ferry buts thats just me. I highly propose that you drive around greysferry during the day and night to make our own decision.

Hello Philly folks,

I am planning on buying a townhouse in point breeze area (any where between 300 to 350K) that I plan on living and renting out rooms initially and then maybe in the future renting out the whole house if I move somewhere else. I am familiar with this area and know that it has changed a lot for the better. But wanted to get a second opinion. What are our thoughts in terms of purchasing townhouse in point breeze area as an investment property?

Ammar

Hello,

I have one rental property in Delaware (about 250K and monthly payments are 1.5K). I am not cash flow positive with this property since I got 15 year mortgage (my mistake, I should have done 30 yr mortgage :)). I am thinking about buying another rental property. Thinking about Philly or Delaware area for around 350K and estimated monthly payments will be about 2K. I have been reading a lot about having 6 month reserve for each rental property. I have 6 month reserve for my existing property (about 7.5K). My question is do I need to ensure that I can have 6 month of reserve for my second rental property as well before buying it? Want to understand what is a safe and general rule of thumb.

Also do people usually keep the reserve in cash or put then in some type of financial instruments. I feel like if I put them in ETFs, those can go down too. Furthermore do people usually combine the emergency fund with the rental property reserve or is it better to keep them separate?

Thanks

Hello,

I am moving from NYC to LA in April 2022 and looking to purchase a property to house hack. My maximum budget is 500K. I would prefer to live in a area that is somewhat lively i.e have cafes, parks and is diverse (I am Pakistani) etc. Also I am gay so a gay friendly area will be preferred as well (I am not looking to move into west hollywood though). If anyone has advice on the areas I should look into then let me know. Also realtors are welcome to contact me.

@Amandeep Singh Bassi see this video. very helpful

@Amandeep Singh Bassi yes I also account for 5% for vacancy. And if I am getting a property manger then I account 10%. Most property managers charges between 9 to 12% of the rent

Hi I personally allocate 5% of the monthly rent every month for day to day fixes and another 5% of the monthly rent every month for large capital expenses. So overall I allocate 10% of the monthly rent. Lets say monthly rent is $1000. I will allocate 1000*0.1*12= $1200 per year for repairs.

@John Morgan Hey John, thanks for sharing this point of view. This will be my second rental so I just want to be on the safe side hence mostly looking for B areas for now. Who knows maybe when I have a decent portfolio under my belt then I can start looking at other areas as well.