All Forum Posts by: Brian Flounders

@Daryl Daryldavid  @Marx Desulme  @Ralph Pena  Please add me to your wholesale deals distribution list for Philly area properties. Thanks!

Brian

Hi @Darryl Mitchell - please add me as well to your deals distribution. brian @ freg.info

Thanks!

@Mike Girard There are still deals to be had in West Philly, particularly if you don't mind living on the fringe.  My most recent purchase was a 4plex in Squirrel Hill (West Philly neighborhood). It's incredibly easy to show, pretty great rents, but best of all, the tenants are fantastic. I may be biased, having lived here since college, but West Philly is the Best Philly.  As opposed to other congested areas, West Philly has trees, and easy street parking, great walkability, and I can be in Center City in 12 minutes on the subway.  But there is about 2 billion dollars of RE development going on right now (mostly east toward (and over) the Schuylkill River and Penn/Drexel Universities)... so the secret's out!  By the by, I have seen so many posts about NYers looking to invest in Philly in the last year. And I have seen our skyscrapers being sold to NY equity partners. NY is a little bit in love with us at the moment :)

@Cory Land I would love a copy of your compiled data on the different neighborhoods if you don't mind sharing!  I live and invest in West Philly, among others. Thanks, and look forward to hearing from you.

Thanks for the replies! 

@Karen Margrave, that's an interesting point. I will check with the township in that regard as well.

@Maura Paler I totally see your point about age restrictions of 25. If the actuaries at car rental places use that age, there must be a financial reason for it! They are all valid points. Normally, I would strive for the same age, but the fact that their boss down the shore is a friend of my uncles, I am leaning toward letting that age slide.

I think, based on your responses, I should check with my RE lawyer just to be sure.

Thanks again!

Hey everyone, 

Just had a quick question regarding age as a protected class.  I am aware that the Fair Housing Act protects from discrimination for housing. You cannot factor someone's age into your rental decision (presence of young children/seniors). Is age actually a protected class? Or is it a generality and encompassed by the protected classes familial status (having children under 18) or senior class (needing care from family or friend).  

My question is about renting to people between the age of 18 and 21 for a vacation property. Our main concern is underage drinking and being held liable for it. My siblings and I own a place on the New Jersey coast, and we have had inquiries from a group of four girls from Philadelphia (ages 20, 21, 21, and 18). They have a reference from their boss, who randomly happens to be friends with my uncle. So I trust his reference. 

1.) Can we legally advertise that you must be at least 21 to apply for the vacation rental? Or is that a no-no, according to the law? It seems to me that it would be fine.

2.) If we allow rentals between the ages of 18 and 21, are we allowed to stipulate that those who are not 21 must have a parent co-sign the lease?

Thanks so much!

Brian

How do you buy and hold investors out there handle security deposits in PA -- or other states that require deposits over a certain limit ($100, in PA) be placed in true Escrow Accounts?

My dilemna is such: the banks in this area will only let me open a true Escrow Account (where the account is linked to the renter's social security number) that has a minimum deposit of between $2000 and $2500. My security deposit is only $1500 in most cases. If I opened such an account with the $1500, there will be a $10/month monthly service charge from the bank. Since I am not allowed to touch money in the Escrow Account until the renter moves out, it is technically their money and they are getting hit with those bank fees.

The options I see:

1. Open the true escrow account for each renter (it's a quad apartment building with $1000-$1500 rents). The banks will charge $10/month per account (ridiculous).

2. Open a business money market account that is used strictly for "Escrow" payments. This will not be linked to their social security numbers, so I am assuming it would then be counted as income on my part. Do my own bookkeeping on whose money is in there, track interest for their deposits, etc. My RE lawyer advises against this: "failure to have a separate escrow account will forfeit your right to security deposit funds in all instances." In certain instances, the penalties for NOT keeping it in an Escrow account could result in me owing them double.

3. Not charge a security deposit but instead charge a "move-in fee" that would be about half of what I would typically charge for a security deposit -- as I saw suggested on this site. This is riskier if they flee, damage property, etc... but would be better than collecting nothing at all. This option relies heavily on a great tenant screening process (but that's never bulletproof).

Does anyone know of any Escrow Accounts that can be setup for free anywhere, even online? Accounts that don't have monthly maintenance fees? I would think that a bank would be eager to have control of these deposits for at least a year, no?

Another options appears to be to buy a bond. "A landlord may put up a bond instead of depositing security deposits in an escrow account. This bond is intended to guarantee that the tenant will get back the deposit with interest at the end of the tenancy." Does anyone know anything about this process?

Thanks for your help!

Another options appears to be to buy a bond. "A landlord may put up a bond instead of depositing security deposits in an escrow account. This bond is intended to guarantee that the tenant will get back the deposit with interest at the end of the tenancy." Does anyone know anything about this process?