All Forum Posts by: Chris Pelc

Philadelphia is a great market for investing. But i would certainly suggest doing some due diligence into all of the neighborhoods, pockets, and nuances that go into that. 

It sounds like you have already defined your investment strategy using the BRRRR method. This is great to scale quickly. But have you thought about your rental strategy? Would you be targeting regular long term tenants, section 8 tenants, or possibly STR?

It might be of your benefit to take some tours of the neighborhoods. Attend some local meetups, and expos. Meet other investors, and figure out what your buy box is. 

I work with a lot of out of state investors. One of the first things i advise them to do take a few days of driving around the city and getting to know it. There is so much material at your disposal for doing due diligence into a neighborhood online. But you will never fully get a feel for it, unless you actually step foot into that neighborhood. 

I would love to connect if you would like some assistance with doing so!

Quote from @Jacob Sherman:

I like the Philadelphia area for flips . you want to be in areas where there's jobs as well as rentals needed in high demand 

I would certainly second that.

A lot of the New York investors that i work with like to invest in Philadelphia. This is because the entry cost is generally much less than property in NYC. If you are looking for a buy and hold with good cash flow, you are more more likely to find them in Philly. Though it really depends on your goals. If you are more concerned with building equity and buying appreciating assets, you can target some of the areas in Philly that are closer to the 1% rule with the thought of building up assets to borrow equity from.

If you've got the backbone to hold up to any challenges this situation might bring about, you could potentially get a pretty good deal on the house. 

As everyone else has said.. It is best to calculate out your holding costs associated with the time that it would take to get the squatter out. 

Generally cash for keys doesn't always work. But that would be my recommendation for your first shot at getting them out. I would definitely pair up with a good attorney as well. If you need a referral, let me know. 

Source a few contractors, walk them through the property, and ask them each for their best quote for a full gut renovation. 

When doing due diligence on the contractors, ask for proof of insurance, licensing, and referrals. Reputable contractors will likely have some sort of social media presence where you can parse through some of their previous projects and work. 

If you need any help, feel free to reach out to me. I recommend vetted contractor referrals to clients i work with, and its a valuable asset to my business. Don't be afraid to spend a good amount of time vetting them and getting quotes. 

Quote from @Khalid Lewis:

Looking for some direction on what to do next. My initial strategy was house hacking but the cash flow isn’t steady and utilities bills are killing me. I’m considering pivoting to a different strategy but not sure what to do or how to do it. Any help would be greatly appreciated.

Hi Khalid!

Whereabouts is this property located in Philadelphia. More often that not, the PHA section 8 voucher can get you rents that exceed the typical market rental amount in the area. Have you considered being a section 8 landlord?

I think everyone would have a better sense to give advise if you break down what the current numbers look like. For instance, what is your note worth, what is the house worth, monthly expenses including mortgage, and gross rents, ect. 

Hi Himmy, 

Starting out is definitely a fun and interesting experience. It certainly helps to have a backbone or network to lean on for advice and referrals. About how far into the process of buying would you say you are. Have you determined what your exit strategies would look like? Funding options? And long term scaling?

I think if we had some context here, we could give you some pin-pointed opinion of advice to help !

Hey Guy, 

Our brokerage hosts a networking event about once a quarter! It's always a great time to connect with other investors that me, and my team work with. 

If you would like to get in contact, ill find out when we are hosting another event and get you some details on that. 

Otherwise, take a look at meetup.com. They list all of the events happening in the area. 

Hey Matthew! Send me over a PM. I would be happy to send you a couple of contractors that can help out. 

If they would be open to a private equity lender, who can fund in just a couple of days, PM me. 

I work with a few investors that have started to lend off of their portfolios, which has been a great resource for me to refer them out. So much easier than working with a traditional bridge lender with appraisals and all. 

There exists some decent solutions for controlling a dehumidifier remotely. If you do some digging online, you will be able to find some inexpensive remote controllers that connect via CAT5e. 

With my background in IT, my only suggestion to you is to get something that connects via hardwire CAT5e. Do not settle for something that is controlled via wifi. In the case of any power outages, the reconnection to the wireless network is not as reliable as being hardwired.