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All Forum Posts by: Ben Reiss

Ben Reiss has started 7 posts and replied 47 times.

Originally posted by Chris Rosenberg:
Ben, point breeze is looking interesting. I read that longtime residents were very resistant to gentrification and there was some violence due to this. Is this still the case? Other than that it does seem like the neighborhood is changing for the better. It's location to center city also helps.

I will tell you that I know of two 20 somethign women who live on the 1700 block of federal. They feel safe walking around during the day and 90% of the area at night. The Sardine bar right on the corner of 18th and federal has brought in a nice little hipster stir. The houses are starting to go for big money. I personally wouldn't go below Wharton but stuff is moving that way.

You need to walk the blocks during the day and then at night. Only way you will be able to decide if it's a good fit for you. If you wouldn't let your significant other walk em then I classify that as bad. I know I would walk them but I am a 6'4" 320lb man who played college football. Since I have no SO right now, formerly she was a cop who carried a concealed all the time anyway so again not too worried, I use the Mom rule. If I would feel ok with my 5'2" mom walking to her car at night I like the block. If numbers make sense I will buy all day.

I will say that Titan is not my fave but anything on a N/S street that is above Wharton or Latona I would like to look into. The closer you are to Washington the better and if you are by Harthornes (an amazing brunch place, whose owners live on the 1700 block of federal) then you are in a nice little zone.

There are some rehabs that turn a 2 story (2 bed) into a 3 so look at that avenue also. I have not bought in point breeze yet. I am looking now. once I sell off a lot and a property in DE I plan on either doing another duplex in temple I have my eye on or looking into a rehab and live in in the point breeze area. There are a few multis in the area that if they are rehabbed could make some nice money.

If you can get in the game and the deal makes sense get in and start up. If you don't have a primary you always can get into something that way.

FHA does 3.5 % down on up to an OO quad (not the greatest terms with PMI for life of the loan). it's a way to get into something in the area worth 400K for like 36-40k depending on closing costs.

There are def some options there. I had a few people talking about brewery town lately too. So there is options.

The forum won't let me post. Keeps being an error. I rent as a group and get co-signers from the parents.

Chris,

the new piazza will be in south Kensington. I forget the web site but it's like Black stone development I think. It's on 1203-33 Germantown Avenue.

http://blog.philadelphiarealestate.com/developer-gives-old-kensington-project-a-trim/

there is some SFH and a few bits still around there slightly north that look like they will have some appreciation in rents and prices. Figure that and slightly east of the piazza there is some room to grow too. I saw a SFH and some lots that look like they still have some money to be made. Units are going for $500+/room on the low end in the piazza area. and I saw a couple SFH on mls that could be bought at 60k/bed.

I base more of my numbers on bedroom rents as apposed to unit rents. since there is such a mix of units in the areas I look to stay in the 3-4 bedroom range unless I am finding more of NL area or yuppy rental area. Then I am ok with a MFH with some two beds. I am not a big fan of a 2 bed SFH though since I can't do much with that. If there are 3 stories on either side though ( or at least one ) then there is the option of adding a 3rd and putting in a master suite on that floor.

Take what I say with a grain of salt and do your own Due diligence though. I am only starting to venture out of non college rentals after selling off my stuff in UD and moving to temple area. But I have friends in point breeze and love the area. Plan on living there or Northern liberties area when I move in the next year.

Troy,

I have heard of people having a hard time filling vacancies, however that is in a farther out area or it is bad build/rehab/ect. There are a lot of investors simply building for cashflow. With no regards to how hard it will be to rent out later on. My best friend has about 85 beds now and is building more. I used a leasing agent I was friends with last year and will use her again if she is still doing it.

Honestly I saw product that I as a former student would never want to live in. New construction with tiny living rooms and small bedrooms simply to get as many beds as possible in the square footage. Is there a huge influx of building in that area? Yes. Is a lot of it crap product and not well designed? Also yes.

Right now if someone is not able to get rented I would guess it would be marked by being in a bad location (anything west of gratz, below CBM or above diamond) and trying to charge new construction prices (550-650/rm), tiny rooms, bad rehab, or another issue. I am not saying the market is not getting filled in. But there is still a need for units in the area that are well done. Maybe this means instead of doing a 12 bed duplex you do a 8,9,10. Since you will won't have to worry about renting it since it will be more desirable I think that trumps the loss of monthly.

I bought an 8 bed for 380K I rent at $4,800/month. I was offered a 12 bed for 400k that if it was filled would be $6,000/month. I won't even touch the 12 with anyone else's money. It will forever be hard to rent because it is a ****** design. tiny rooms and tiny kitchens.

I also think there were a lot of investors who saw/see the opertunity and don't understand the need to have a leasing agent or be very hands on and proactive about renting. I start right around or before thanksgiving. you get a better pool of students and they are more proactive.

I think there is a chance at doing well in that area. They will be building the next Piazza right across girard so that will prob bump up the are some also. I know that's a bit south of what you are looking at but there is opportunity.

I like the Point breeze area, but only far north near Graduate Hospital. I have stuff in temple now but am looking to get something right below Washington. There are still some older spots going for around 100K. Nice rehabs and new construction are going around 300K for nice work. So there is def room for forced appreciation.

Temple area is also an option you're not getting $900 for every 50K. But a rehab in a good location will get you 1.3-1.4 rent multiplier. So not as close to 2% rule but much more appreciation. Lots in the area are going for 3-4 times as much as they were 8-9 years ago. College rentals have their own headaches and pluses so decide on that for yourself.

Post: Blue tape alternative

Ben ReissPosted
  • Wholesaler
  • Newark, DE
  • Posts 50
  • Votes 4

Sealing the tape and getting it up in the right timeframe is key. I second the bullfrog tape. but in all honesty I stopped taping and just cut now. I take my time on the lines and it may not be 100% perfect but it takes wayyyy less time to prep and finish a room and it looks 98%. I would say practice practice and practice cutting in.

Once you get the hang of it it's not too hard.

Ben

Post: Buying two Duplexs next door to each other mortgage ?'s

Ben ReissPosted
  • Wholesaler
  • Newark, DE
  • Posts 50
  • Votes 4

Great thanks guys. I am looking into some smaller lenders now. would rather do a single loan for those but if I need to do a blanket for all my properties that is an option also. Pretty much whatever can get this deal done, with the right terms.

Brandon,

I am open to the idea of the land contract and will float that to him. I have been making offers with owner carries on a few lots I am under contract with one right now with owner carrying 65% for 18 months so the buyer can do zoning and build. I have a partner that picks up pretty much anything I can find in temple if the numbers work. Loves when I get him owner carries in there for a year.

I guess I will have to mention the tax benefits to him. since he will only be paying on the proceeds of the sale as he receives them. I will just have to do a lot more reading on the subject honestly.

So thanks everyone.

Ben

Post: New to BP in Philadelphia, Pa

Ben ReissPosted
  • Wholesaler
  • Newark, DE
  • Posts 50
  • Votes 4

Welcome,

I also invest in the philly market. I am in Temple area now but am also looking to branch out into very northern parts of point breeze and by northern liberties above Girard.

Where are you looking to invest? what area of philly are you looking to invest in? what kinds of price range are you looking at?

Temple still has some deals but they are a lot fewer than even a few years ago. The market is beginning to saturate for anything other than new construction or great rehab with a very solid location.

I like the northern edge of point breeze just below Washington. down as far as Wharton but not really below Titan. Block by block but west from 15th to about 20th is good.

Check out NakedPhilly (google it) it's an interesting site on development in philly. It is owned by a realtor/developer so some of the stuff must be taken with a grain of salt. But gives a great overview of development in the city.

Cheers,

Ben

Post: Buying two Duplexs next door to each other mortgage ?'s

Ben ReissPosted
  • Wholesaler
  • Newark, DE
  • Posts 50
  • Votes 4

Brandon,

Thanks for the response. Glad this is not a crazy idea. The deal is actually rather good on price. I bought my first duplex up there from the same builder who did his. The owner of these was my lawyer in the transaction and on all my real estate transactions since.

I don't know if he will go for the land contract idea but I know he doesn't want to deal with them anymore. I think I could make a play for him holding a bit of the paper on them if it lets him get out of them both. He is extremely busy and successful in his practice so it's not worth the hourly to deal with and there are not too many good property managers up there, actually none that I found unless you have enough properties to hire full time staff yourself.

once a few more things line up I will broach the subject with him more. I am just waiting to close on my lot I am selling and rehab just finished on another property to sell to free up the capital.

I am sure if I can make it painless and simple for him that will make it much likely. This is one of those if it's painless it'll play. Even if he could get some more for them if he pushed really hard.

Would you work by approaching the local bank first, show them my portfolio and history so as to lay the groundwork? or Getting some basic contract set then going ahead and speaking with them?

My thoughts are start finding banks in Philly that hold their own paper and seeing what they are looking for. Then once I get closer I can hash out specifics and move forward with one bank to contract.

Sorry if some of this sounds very beginner-ish. I know I will have to do my own research to find the bank and build a relationship just have not gone with commercial funding before. But I guess any bank that hold's it's own paper would be able to give the loan possibly as a blanket or possibly using some pledged second on my other properties.

Thanks again,

Ben