All Forum Posts by: Janine Covello

Hi Melanie! Such a smart decision to start investing -I started two years ago for a lot of the same reasons as you and have since bought two duplex and one single in Philadelphia. I will say they have all been some of the best decisions of my career and I am so happy to have done it- I invest from New York which was super hard work it was in the beginning coming down almost every week but looking back over the past two years I can finally say it is paying off. best of luck :) 

I invested in Frankford last year as well and honestly loving the cash flow.  The numbers just work- and my property there has done well for me- I only have one so far in Frankford.  I am so far continuing to look there, as well as Harrowgate/Port Richmond area, where I have a duplex and am under contract for a second duplex. (incredible cash flow on those duplexes)  I plan to continue to invest in both areas.   My strategy is buy and hold and not really sell for 10-15 years at least so this works for me! 

This coming from a New Yorker and new Philly investor :) Honestly, that money can go SO much further in Philadelphia and she would have so many opportunities with that budget for a significant cash flow and rate of return. 

That being said, so far I have found that in order to feel comfortable with my investments in Philadelphia to date, I have had to be pretty hands on in my first year. I think this is great, and I absolutely love the learning and the action items I check off after each trip down, but it isn't for everyone. 

So she needs to make sure she can realistically commit to doing the research, finding the deals, finding a good team of people to work with, and making the trip down (The trip is super easy, only 2 hours each way from NYC if you remember to leave when it isn't traffic!!!) 

I am seeing prices for light rehab (some Sheet rock, paint, grout, caulk, moldings) for about $3,000 for a one bedroom unit- I mean there are so many ways you can define what is light rehab vs medium etc- but I got a few quotes for painting/some sheet rocking, new moldings, etc and that seemed to be the range (like 2500-3500$ for a one bedroom) including materials

plus an additional 300$ to clean out debris, and window repairs I'm still waiting on separate estimates for but can share information on what I get back :) 

Hi All! 

I saw the post on renovation fails- and it inspired me to share my story on how not successful my first "deal"/offer back in January, with hopes it may help others. 

A few small things I learned in case it helps anyone just starting out- but would LOVE to hear any lessons you learned from buying/renting real estate.

I was happy as can be when my offer was accepted on a "great investment property" in Philadelphia. I was thrilled for much of January, trying to take all the advice from bigger pockets and making it work for me- but then started running into problem...after problem...after problem.

It's all 20/20 in hindsight, and I would have handled things differently now, but there was SO much I learned from it.

1. Don't do business with people who are dishonest. It seems so obvious- but when it was actually happening, I kept rationalizing. At first I let it go that the sellers had misrepresented the rents on a signed disclosure, but as we uncovered more information during due diligence almost everything they had told me about the tenants was a lie- I SHOULD have ended the deal then.

2. Get ABSOLUTELY EVERYTHING IN WRITING- every single change to the addendum, and make sure it is signed and counter-signed before you consider it checked off your to do list

3.  Talk to the tenants! It was really awkward during inspection, and the downstairs tenant was obviously unhappy, If I had known earlier that she had no intention of leaving I may have been able to handle it differently, gotten out of the deal sooner, or offered cash for keys.  I was uncomfortable and rather than just step out of my comfort zone and use the opportunity, I let it pass and paid for it.

4. Be aware of the financials-always- and understand they can change. First it was just some flooring and walls, then it was electric and windows, then radon...then U&O certification...at a certain point the margins on this deal were just not at a point where it made sense. 

I moved on, and found two new places in the subsequent months but wanted to share this experience in case it helps anyone, even in the smallest way!

Just another vote for Brandon turners book on managing rental properties. He breaks it down into simple manageable steps for everything and is an awesome resource. I love that he keeps a procedure for literally everything and he outlines his extensive tenant screening process with specifics.

Hi All!

New investor here, have bought two houses in Philadelphia this year, but both in pretty solid condition/only needed a few things that were easy to budget. 

I have seen some interesting places in my search though, places that seem to have "Good bones" but need a lot of work, and honestly because of my inexperience, I have decided FOR NOW they aren't for me- but I'd like to learn more about major rehab work for the future. 

1. How did you take that step from more or less ready to rent places, to major rehab places? What books were helpful? Did you need a construction background? 

2. Contractor screenings- what are your must ask questions when you start getting contractor quotes? How do you structure your payments and deposits to minimize risk?

3. I have found that I learn best by doing! (I think a lot of people do)- throwing it out there, are there any experienced investors who are working on any flips or major renovations for buy and hold that would be open to going in on a deal with someone new in Q3 or Q4? I don't bring any experience on the construction side to the table, but I am flexible about being able to visit job site, I am a great communicator, can make calls, do research, and I have the cash to finance the deal depending on budget :)

Would love any feedback/advice from more experienced investors! Thanks guys. 

I have been using my own agent in Philadelphia to put in offers on multi family and single families and I was telling my husband today- I can't believe how much time and work it has saved me.  I think if anything they have given me more negotiating power, as the house we recently went under contract for had 4 different offers, and they made sure mine won. 

On closing on my last multi-family my agent spent a LOT of time coordinating with the title company and the seller on tax lien issues, re-writing any contract addendum to make sure my deposits were protected at any time when the seller pushed the close, checking in on the property and the reply to inspection and verifying everything was done properly, verifying the O&U certification etc.

It sounds like you have more experience than me so maybe you wouldn't need all of that- BUT I just think the amount of time they put in, their expert with contracts and negotiating, and their general availability to go check on things on my behalf was huge. 

That is so awesome! Congrats on your hard work paying off :) 

Hi Farida! I am also living in the NYC area, and i thought about New Jersey before settling instead on Philadelphia as my starting point for investment:) As many others said, Philadelphia has some great value homes in various neighborhoods where you can find a strong cash on cash return, low price entry points, and ability to invest in multi family which was important to me from a numbers perspective.  

As Chris mentioned, Newark could be another good area to look into if you are really set on New Jersey, but agreed that you will want to make sure you pay attention to the specific block and area as that area can vary quite a bit block by block.