All Forum Posts by: James Brand

Great feedback here, @Ram Srinivasan made a good point in regard to the strategies he mentioned. You can always as a seller if they would consider subject-to or seller financing. However, the reason house-hacking a MFH has so much appeal is that as your first investment being in the building allows for you to keep an eye on it. Minimizes risk....

-James

Hey Luke!

Congrats on your first post! I think you will soon realize engaging with others in the forums really adds to the whole experience here. Sounds like you have done a good job building a foundation of knowledge. I would recommend familiarizing yourself with some of Philadelphia's government websites, things like zoning maps and property searches can be very helpful when considering property in the city. Investing in CC Philadelphia in incredibly expensive and requires a lot of capital. The FHA Multi-Family is a great strategy though, and can definitely have success in the city. I would consider some of the up-and-coming areas like Gray's Ferry, Point breeze or Brewerytown (shout out to @Troy Sheets) where you can still get into properties for a reasonable price and see a nice return. 

Glad to have another Philly guy in the mix...

-James

Welcome Gabriel!

MFHs can be tough to get in Philadelphia, mainly because there is not a wealth of them available. Also, they can be very difficult to get into when they are tenant occupied. You have to be persistent in getting the tenants to agree to showing and hope they do not get sick last minute. Usually it takes at least 2-3 visits to see a whole property.

Point Breeze properties are really starting to move, and Grays Ferry is toted as having a lot of potential but until more businesses move into the area I do not expect a lot of appreciation. Mantua/Powelton Village can get very pricey as you get close to the universities which is where you would want to be.

With 30k of capital, you would like be looking at the down payment for 1 duplex/triplex in the city. I live and work in the city so if you ever have questions, feel free to reach out.

Best of luck!

-James

Welcome Jon, Paul Timmins pretty much hit the nail right on the head w/ everything he mentioned. All of his suggestions will serve you well in learning the industry. Just be diligent in getting up to speed. Best of luck! -James

Hey Edwin and welcome to BP!

I always enjoy seeing new people interested in the Philadelphia market.

Firstly, I would make sure your Realtor runs through all of the paperwork with you to familiarize you with the scope of it. For first-timers it can be overwhelming and it is best to see that first, preferably before seeing the property. When you are at the property it will be more difficult to be objective. 

Secondly, 1k after the mortgage is a good place to be, however you should analyze your gross income for the property and remove 50% for your expenses as an estimate, and I would hope part of that is at least 8% of gross rent to pay your parents for managing the property. This way, like @JD Martin mentioned, if that arrangement ceases you have already budgeted for PM. Other things in there are insurance, repairs, taxes, utilities, etc. Calling utility companies, insurance companies, and pulling public records will help you hammer down your estimates. It always comes down to the numbers.

Lastly, have your realtor find you similar properties to the one you are coming to see. It may be that this is not the one and you might as well have a few backups to check out since you are going to the trouble of coming out here. I would also recommend using a local lender, less headache and easier more reliable closing. I have one I use in the area if you are unsuccessful with yours.

Best of luck! I live and work in the area so feel free to reach out if you ever need advice. Always helps to have people in the area you invest in, especially when you are out of state.

-James

Hey Greg,

If you are considering rentals in South Jersey, despite the very accurate advice already given regarding expenses, I would focus on properties close to the PATCO speedline. This rail system is a very affordable mode of transit that thousands of commuters use to get into the city. I lived in Cherry Hill for two years and loved commuting into the city that way. Additionally, it is one of few systems that run 24 hours so it is also a fantastic option for enjoying Philadelphia restaurants and night life. 

Another option to consider is investing in properties along the Trenton/R7 SEPTA rail line. This train picks up commuters from Trenton all the way down to Philly running along the Delaware river. So your property is practically in NJ but enjoys PA taxes. I think you will find much more favorable holding costs West of the river. Opportunities here will also be closer to you initial area of interest in North Jersey, where I was born and raised btw. Just food for thought.

I am familiar with both of those transit lines and surrounding areas, so if you have any questions feel free to reach out.

-James 

Welcome Larry!

You are already headed in the right direction. Your experience will serve you really well in this industry. An investor buddy of mine is a carpenter, and I bring him along when I look at properties I am seriously considering, so your expertise can definitely add value to investors, and serve you as one. 

Definitely check out the Ultimate Beginner's Guide (http://www.biggerpockets.com/real-estate-investing)

Also, start listening to Brandon and Josh on the podcast, their discussions will help you understand different strategies.

I work in Philadelphia, so if you are ever interested in anything in the city, or you just want to chat, reach out.

-James

Welcome Anthony!

You cam to the right place! 

Definitely check out the Ultimate Beginner's Guide (http://www.biggerpockets.com/real-estate-investing)

Also, start listening to Brandon and Josh on the podcast, it really helps put examples to strategies and understand the lingo.

Finally, there are a bunch of BPers in the area so always seek advice and feedback when you consider an investment.

Best of luck!

-James

Welcome David!

Start listening to the BP podcasts and check out their guides/blogs. Attaining the necessary knowledge and coupling it with the experience you have from owning rental properties will help you escalate your business. Best of luck and reach out anytime to talk REI!

-James

Welcome Darieal,

Great introduction! Very cool to have someone come on not just to learn but to teach as well. The more people from Philly the better!

_James