All Forum Posts by: Chris Pelc

Quote from @Daniel Duku:

Hello Fellow members and investors, 

My name is Daniel and I am no stranger to real estate in general, but quite new to the investing aspect of it. I have been a Project Manager for Construction, Project Management, and Development companies my entire professional career, and this is my first year fully as a developer/investor. 

There's a lot I know from Financial Modeling to Pre-Construction to Settlement/Post-Construction, but I'd say where I still have a lot to learn is in Acquisitions and Due Diligence. Very excited for this journey, and I'm looking forward to learning more about real estate investing and connecting with you all

Daniel 

Hi Daniel, welcome to the BP community!

With all of the knowledge you already have on the development and construction side of things, understanding the due diligence and acquisition side should be a little bit easier for you. Bigger Pockets has been immensely helpful to me in networking, and learning from others. There are so many resources, and people to connect and talk with to answer any questions you may have about investing. 

A lot of the investor that i work with have SOME sort of construction background or knowledge. Its very helpful when analyzing a deal.

When it comes to fix/flips, the first step is to figure out what the ARV is projected to be. We do this though comparative market analysis. Once you know what the targeted ARV, you can determine what the rehab will be. Most investors stick to the 70% rule. If your acquisition + rehab totals under 70% of your projected ARV, you are likely looking at a good deal. Pending there are no outside factors such as violations, zoning issues, or hidden structural concerns.

Would you be looking to fix/flip, or develop new construction on vacant land?

Quote from @Samantha Storz:

Hi BP Community!

I've been dreaming about investing in real estate for awhile now and I'm finally putting myself out there to the community in an effort to hold myself accountable & invest in at least one property this year! I'm from the Philly suburbs and definitely interested in tapping into Philly neighborhoods (thinking Brewerytown, Old Kensington) but as you know if you're from Philly, neighborhoods can be safe or not depending on what block you're on.

I've read a lot about BRRR and was thinking that would be the method I try out. Ideally, I'd love to partner with a private money lender on this. I'm so brand new here and it all feels a bit overwhelming but trying to take it step by step. My goal for 2024 is to purchase at least 1 property and go to at least 1 networking event a month or grab coffee/lunch with investors/agents/contractors in the area at least once a month to force myself into taking action.

Let me know if anyone has any advice for a newbie or if anyone in the Philly area wants to meet up for coffee and chat! :)

Hey Samantha! 

I'm a philly suburb local as well. It's certainly exciting to start venturing into the real estate market when you are looking for investments. I know that you mentioned Brewerytown, and Old Kensington. Have you by any chance looked into Point Breeze, and parts of W. Philly? If not, i would definitely recommend looking into them. With a fairly close proximity to Rittenhouse square in Point Breeze, and the proximity to universities and transportation in w. philly, they are great spots for BRRRR rentals.

I just helped another out of state investor get set up with private equity lending on a house we just closed on last week. Definitely a great resource, as well as hard money lending for getting into your first property!

Give me a call if you would like to connect. 

Quote from @Garrett M.:

Hello friends! Is MTR a good strategy in Center City / Art Museum?  (4 Bed 2.5 bath, 2400 sq ft. street parking only)  What percentage over standard rentals can one expect and is it worth the extra management?
Looking for market specific consultant and potential MTR property manager. 

Thanks in advance!

 In the Fairmount area surrounding the Art Museum is a great place for rentals in general. The area is under heavy development. If you were to consider a place in and around center city, you will likely end up sacrificing cash flow. Your higher potential rents are not always in the primo places to live. If you are looking to build equity with high appreciation areas, center city is where its at. I would suggest looking in areas that are in close proximity to hospitals, universities, and transportation hubs. West philly has the best of all of those worlds.

I just sent a message to connect. If you'd like to talk a bit further about some of these areas, let me know. 

Hey Mark, 

I'm an agent in the Philadelphia area. I have some connections for PM if you'd like to message me. 

Philadelphia is just as good for rent to value!

I just sent you a message to connect. 

It really comes down to your relationship with your parents and how you guys internally negotiate the split.. 

I have seen some investors break the work down into categories with their own weight. For example: 

25% Sourcing the deal
25% Funding the deal 
25% Rehab / Managing work 
25% Sourcing tenant and managing property

Obviously all of those figures can be weighted differently according to what you guys determine their value to be. But I think that if you break it down into each action of responsibility, and determine their value, you will be able to come up with proper splitting of profits and equity. 

If you need any help with sourcing a property, i sent you a request to connect. 

I would consider talking to a real estate attorney regarding the seller still not providing a vacant property to you.

These things should have been disclosed to you prior to even making it to the closing table. 

Regardless, i would find a new tenant to replace them with. It will be more of a headache than anything trying to get rents and deposit from a tenant that is unemployed. 

Contact me if you need a referral for an attorney. 

Quote from @Julie Chen:

I am interested in buying another primary residence to take advantage of Fannie Mae's 5% down for multi family homes so I can house hack. I am a single female and cannot drive since I grew up in NYC, so I'd like to get suggestions for safe neighborhoods near public transportation. (I tried taking the road test multiple times and it is a work in progress...)

I'd really appreciate it if you have any suggestions for neighborhoods in:

- New Jersey, Connecticut, Philadelphia, even upstate NY

- Seattle area 

- Washington DC, Virginia, Maryland area 

- Boston area 

My budget would probably be under 1.5 million depending on how much rental income I can get. 

For example: 

1 million, 3 bedroom home

P&I is $5,695 (5% downpayment, 6% interest) 

$3K rental income (assume I can rent out each of the 2 bedrooms left for 1.5K each)

which leaves me with paying 2,695 which I am comfortable with. 

With a budget of $1.5M you aren't really limited to neighborhoods, in Philadelphia. With that being said, some of the neighborhoods that are near public transportation would be anywhere in University City, Rittenhouse, Center City West, Washington Sq. West, Fitler Sq, and a few more. 

If you are familiar with 30th St. Station, which is located in University City, it is one of the biggest hubs for Septa, Amtrack, and other major rail systems. Anywhere in close proximity to city hall in center city, you will have pretty easy access to the subway systems. 

Generally speaking, all of these mentioned areas are really A- and above. So the purchase price of a property in theses areas will be reflected on that. To assure you will have a good CAP rate, with decent cash flow, you just need to make sure you do as much due diligence on the front end as you can. Multi-unit properties 3+ units might be your best bet. 

If you're interested in understanding off market inventory in these areas, i would be glad to connect. 

 

Hey @Matt Lopez

It sounds like you've already got a pretty good plan of action if you were to venture into the Philly market. I would definitely agree with Alan regarding the suburbs being a sellers market, and philly being more of a buyers market. 

Philly is a great area for cash flowing rentals, especially if you'd like to take advantage of value add  and take advantage of a cash out refi. Other than Passyunk Ave. have you looked into Point breeze or any areas SW of center city? 

I just sent you a request to connect if you'd like a brain to pick. 

Hey @Jason Homa

I have a great referral for a property manager based in Delaware county. They primarily manage in the suburbs, but might be open to a couple of rental units in West Philly as the proximity to their service area is pretty close. 

I just sent you a connection request.