All Forum Posts by: Chris Pelc

Going off of what everyone else is saying in here, i would start to attend some local meetups, expos, and networking events. Join as many REI fb groups relevant to Philly investing, and get to know other investors in the space. Getting your RE license would absolutely give you a leg up in this industry.

A lot of people advertise their meetups on Bigger Pockets, but you can also find some on meetup.com. 

TJ Hock from Rentwell is who i typically recommend out to my investors. 

Whereabouts in Delco? 

Great idea! I'm working with an investor from NYC doing the same exact thing this weekend. They will be coming down over the weekend, and we will be checking out some properties in various neighborhoods to get a feel for the areas.

An informed buyer is the best buyer!

Hey Matthew, 

I know that there has been a huge increase in Section 8 rentals in the Philadelphia market. Likely being due to the current increase in rental voucher payouts back in October of 23. 

You could go many different ways with rentals such as student housing, section 8, targeting specific renters such as traveling nurses/doctors. Short term rentals are tough in the Philly area though. 

Give me call, i'd be happy to give you some insight on what works for some of the investors that i work with. 

I have some connections for great DSCR lenders in the Philly area. The one i currently do a lot of loans with lend on 1.1% of the debt service.

Considering your current employment situation, DSCR is definitely the way to go in addition to the idea of utilizing a 1031 exchange on the property in MA. 

How are you planning on sourcing the property? Have you put any thought into off market properties in the Philly area? If you are not afraid of conversions, you could potentially even venture into RM1 conversions - single family home zoned RM1 - converted into a multi family residence. 

Give me a call if you'd like to connect!

Hi Daniel! 
I just connected with a financial advisor/ CPA at a local meetup in King of Prussia. I will likely using his services for my personal finances. If you would like, i'd be happy to send you his contact to maybe see if his services are best for you. 

Hey Patrick

Glad to see you have an interest in starting your investing journey! 

Would you be open to SFH conversions? I work with a lot of investors who target single family homes zoned RM1 with the thought to convert into small multi family properties.

If you are looking for turnkey properties, or those that are already setup as a multi family, what is your price point and desired area?

I would second the response above me. But i would also like to ask are you only able to produce a max downpayment of 5%? If you can afford a larger downpayment, your restrictions to financing are a lot less. The problem in the retail market is that if you are looking at a good deal, you will likely get bid out by cash buyers, and those with financing options that require less contingencies. With investment loans, you will be required to front at least 15%-20%. If you are looking to house hack especially with a property needing an extensive rehab that is not "habitable", you might want to look into hard money options, with the thought to refinance as soon as the rehab has completed. 

I also have a few sources of private equity. Which for qualified buyers, is a great resource. 

Let me know if you'd like to connect! Would be happy to help out. 

Hey @Pradeep Velugubantla

Welcome to BP and the REI world.

It really depends on your goals and what you're looking to achieve. I think the first question you should focus on, is what your intended investment strategy will be. The answer to that question will likely help in the decision of taking title with an LLC. As others have said, if you are looking to house hack, an LLC will not be best suited for you as you will likely want to go with FHA financing. In all cases you will need the certificate of organization, an operating agreement of the entity, and obviously an EIN. Forming an LLC prior to taking title to a property doesn't take a lot of time. A lot of the investors i work with either put their properties in an existing LLC, or form new entities. In some cases, they will take title in their personal name for better financing solutions.

The Philadelphia area is a great area to get started, if you are looking for cash flow. With low purchase prices, and higher average rent to income ratios, its a great place to invest. Though i would like to clarify when you say monthly cash flow of $1000/month. Are you looking for $1,000/month in GROSS income, or $1,000/month NET cash flow after all expenses.