All Forum Posts by: Dan Powers

Hey @Matt I. welcome to the community! Congrats on your first property, I hope everything is going smooth with that. You are very correct about all the development in the Norris Square area that area is definitely up and coming and will continue to appreciate.

One area that I would recommend that fit within that set purchase price budget area actually east of Frankfort & Leigh. If you drive the area while you might see some drug users, there are large amounts of new development and new builds going up. Now those new builds are not by individuals like us, but large developers like V2 Properties who own 1000's of doors across Philly. This is the beginning stage of the neighborhoods changing.

Other areas I would focus on is West Philly (specifically cobbs creek), and the West Oak Lane/ Mt. Airy area. I would say West Oak Lane is a little more expensive then cobbs, but by a small margin. Both areas are great markets for flips and rentals.

I hope this helps you with your search, and shed some light on everything.

Dan Powers - Real Estate Agent

@Daniel Cardoso If your thinking about investing in Norristown I would highly recommend it. While there are good and bad parts there are tons of new development projects coming to the area. Here are 3 articles about Sandy St. Luxury Apartments, Riverfront Development, and a new park along the Riverfront.

https://www.timesherald.com/news/new-lease-on-life-for-condemned-sandy-street-building-in-norristown/article_d2f0efcd-6528-5a59-8ab6-20ad28153b03.html

https://www.norristown.org/DocumentCenter/View/291/Riverfront-Master-Plan-PDF

https://www.norristown.org/424/Riverfront-Redevelopment

They are trying to development the area into a younger art district kind of vibe. You should have no problem renting that property out for $1450, honestly I agree with @Ramon Robert Rios that you can easily bump that rent up to $1650 with the right finishes.

@Dan Fine Just red through everything and if you spoke to L&I and they said your good then your good, and good for you for reaching out directly. Sounds like you definitely got a good one in a great location. I feel for @Adam Bergman cause you could pick up stuff 5 years ago there for real cheap, now your seeing new builds go for 700k+ which is insane.

I also agree with @Sheryl Sitman on the point as long as you have solid GC doing the work he should be able to plow right through those violations.

Hope I shed some light on everything, if you have any more questions certainly reach out.

Dan Powers - Real Estate Agent

@Arun Dharan Welcome to the community. I will say if your looking to house hack a multi you better have patience. I always compare finding a good multi in philly to finding a unicorn. While they do exist, there is the added level of complication because you want to live in it as well and they generally means a higher standard of living for yourself.

My recommendation would be to look in Delaware County, the multi inventory is significantly higher, are typically in better condition, and always have less title issues than philly properties.

I agree with @Kunal Mishra in some of his descriptions of the areas. I would add Northern Liberties to the areas where appreciation is occurring.

I can certainly shed some more light on the areas of philly or delco if you'd like. Would love to connect.

Dan Powers - Real Estate Agent

Hi @Joseph Friedman, in terms of streets to watch out for the main one being Aramingo Ave. Generally people try to be south of it, obviously the closer to the water the better but everything south of it is worth your time to look at. Also Allegheny Ave, every deal is this pocket should be looked at on a deal by deal basis and not comparing one Port deal to another because there are many factors that go into it.

I hoped this shed some light on the issue, I'd love to connect and answer any more questions you have.

Dan Powers - Real Estate Agent

Hi @Account Closed welcome to the community! Philadelphia and the surrounding suburbs is a fantastic market to get into, while it is becoming a little more competitive to find deals, that is in no means a deterrence. I will say in looking for the BRRRR method Delaware County is the best fit. While there are plenty of deals in Philly that make sense for that, there is much more extensive inventory out in Delco compared to Philly.

In terms of multis, I compare finding a good multi in Philly to finding a unicorn, very rare. But, in Delco they are more common. I have also seen the majority of multis come with good mechanicals which is always a large part of the rehab needed in these types of properties.

I agree completely with @Ross Yeager in his numbers for SFH and multis as a good benchmark to shoot for. There are plenty of deals in Delco that you can refi out all your money, just takes a little to find the right one.

I hope this helps and certainly reach out if you have more questions.

Dan Powers - Real Estate Agent

Hey @Kyle Davidson Congrats on your successful house hack! Finding a communicative agent that actually respects your time as an investor is difficult. Just like any other profession there is a lot of them but very few actual good ones, you're going to want someone that respects your time as much as they respect their own. I can put you in contact with a few buddies of mine that have done great work up there. 

I operate in the regions of Philly and Delco so if your ever looking in those parts certainly reach out, would love to connect.

Dan Powers - Real Estate Agent

Hey @Connor Eichman I'm also an agent in the area and work with @Jimmy O'Connor. As mentioned by @Rich O'Neill our team certainly is making major headway in Delco with our other office in Drexel Hills. Also, being local to the area I've known the area for quite some time now.

Would love to connect, looking forward to hearing from you.

Dan Powers - Real Estate Agent

Hi @Teresa Gimenez welcome to the community! I'm an agent in Philly and can definitely shed some light on the questions you asked.

There are plenty of areas all over Philly where buy and holds are an amazing strategy. West Philly is a fantastic area for that due to the multiple exit strategies the area commands, with lower entry prices and high rental values it is a perfect area to pick up a 3/1, do minimal rehab, and cashflow. I would recommend against south philly as a buy and hold market, due to the higher entry prices and the rental income not being proportional to those higher entry prices. 

In terms of how your going to finance your deal, while cash is always easiest and less stressful. It's all up to you and how comfortable you are pulling equity out.

I really don't think theres a time that's "to soon" to start buying, again its up to your conformability, if you're ready to pull the trigger then start looking at some properties and pull the trigger. 

To reiterate my point earlier I think you should focus on west philly as opposed to south for your buy and hold. I'd love to connect and discuss your interests more, certainly feel free to reach out and connect.

Dan Powers - Real Estate Agent

@Steve K. I can definitely provide some clarity on our process as it has definitely changed in the time you last felt with us. Now each office does things a little different so I'll tell you how things are done here in Philly.

When a property becomes available I provide all the information up front, everything you'd want to know: price, arv, rehab needed (not the cost of rehab, but what's needed), comps, closing details, everything that you'd need to help make the best informed decision. The only time you're paying 10k is when you're ready to move on a property because that is the down payment needed. 

I would say there's a 90/10 split of our inventory between off/on market, with 90% being off market. Now the 10% that does slip through the cracks of the MLS we always acquire below the list price so you'll never see a property listed for 100k and us selling for 110k. You would see 100k listed, 85k with us.

We do not work with any contingencies such as finance or inspection, but, we will not close on a property if title is not clear. We do not have a $200/day thing that you are talking about, but our close dates are strict because they are not decided by us, there by the seller. 

Also in the Philadelphia market we do not work on doubles closes which ensue the double closing costs, we work on assignment contracts since the transfer tax in Philly is 4.28% and if we did a double close that transfer tax would kill the buyer and eat up the margins.

I hoped I was able to shed some light on our processes up here in Philadelphia. If you want to reach out and discuss more certainly reach out and lets connect.

Dan Powers - Real Estate Agent