All Forum Posts by: James Brand

Hey BP!

Intro:

I have always been thankful for the different posts that people have put up documenting their projects from beginning to end. Given that, I decided I would periodically provide status updates and pictures of the rehab project I am currently working on in Philadelphia.

Background:

Earlier this week, I settled on a shell in the Kensington area of the city, very close to Fishtown. The strategy with this property is a bit of a hybrid but can most aptly be connected to @Brandon Turner's BRRR strategy. The goal, to end up with a property that will appraise at a value such that all of the funds invested throughout will be refinanced out.

It is a 3 story row home that runs street to street. The basement is going to be cleaned up, but not finished entirely, mainly used for storage. It is currently a scary space but when its done, it will be a suitable space for not just storage but a futon/man cave as well.

The first floor will feature a kitchen in the back third of the space with an island that will house the dishwasher and sink. A dining area will separate the kitchen from the living space, think sectional with TV. ( I have rough blueprints with room layouts etc. that I will post later.)

The 2nd floor will feature a master bedroom with nearly 12 foot ceilings, a huge walk-in closet, washer/dryer, and an office/nursery.

Finally, the 3rd floor will have 2 very comfortable size bedrooms that share a bathroom with double sink. 

A lot of planning and prep has already gone into this project. I will continue to post updates, problems, concerns, and changes all along the way. Feel free to comment or ask questions as you like.

-James

I have to agree with the general consensus of the responses. While the numbers are good, at those prices I imagine the area is quite dicey, and if you are trying to build a portfolio that you manage yourself, or even if you have someone else manage, you would not want to be disinclined to see the property if/when there are issues because of the area.

Good luck!

James

Welcome Mark! You won't be disappointed with what BP has to offer!

-James

Okay BP, 

Just lost a fridge in one of my units. Will be replacing with the same fridge from another unit I am just finishing up rehabbing. The appliances are white though, and now that the newly rehabbed unit will be out a fridge I am considering replacing the appliances with stainless steel. The increase will run me about $850. Worth it?

In my mind this nicer finish will bring me $30-50 more per month. There is also the higher caliber tenant argument that can be made.

PLEASE WEIGH IN!

I am very curious for feedback!

-James 

Hey David, Securing a foreclosure can be a very tedious process. Additionally, if the properties are not owned by a bank free and clear the setbacks and roadblocks can be numerous. My guess is that the realtors you have spoken to have gone down that road with clients in the past only to be unsuccessful after an extensive amount of work. Just my $.02! Good luck! -James

Hey BP, 

I am currently considering a potential tenant with a poor credit score in Philadelphia. He was upfront with me about it when first viewing the property, and explained he does not currently have a credit card so building his credit has been tough. His prior two landlord references had nothing bad to say. Additionally, he was agreeable to move-in ahead of schedule which is ideal for me, and a longer lease so that the lease term ends in the Summer next year. 

I am curious to get some takes on this...

Thanks!

James

Hey @Kelly Bochna,

Great advice already on this thread. Just to add one other tip, in addition to all the resources here, podcasts, webinars, etc. I would check out BP's reading list (link below). As you check off titles on this list I think you will find that you are more enlightened about REI.

Best of Luck!

21 Best Real Estate Books

Welcome @Hakeem Tinubu& @Scott C.

You have come to the right place! Great first step to learning and investing.

Definitely check out BP's Ultimate Beginner's Guide, it helps to form a general foundation in the industry. Additionally, listen to the BP Podcast and you will find yourself discussing REI in a much more professional manner very quickly. Also if you are a bookworm, check out the list of BP's 21 Best Real Estate Books, and start checking them off. I try and read at least 1 business book and 1 Real Estate book a month.

Philadelphia also has some very useful online tools to access public records.

Are there any particular areas of Philly that you are looking in?

-James

Hey @Edward A.,

Transfer taxes are double, however your annual real estate taxes are usually significantly less. You do need a proper license, which costs $50 per unit rented. There is also a $300 annual charge for trash.

What area of Philadelphia were you thinking of buying in? I have found that properties needing a little bit more work are the best way to go for the numbers to work out.

Best,

James

I have attended events similar to this in the past, and while there is information and learning to be had, it all seems to be coupled with some type of program or mentoring. I think at its core BP was created so that people interested in REI had a place to go learn and ask questions without being roped into something more costly. I actually think attending a meeting such as this can be a very enlightening, and even an inspiring experience. However, not for the support of the sponsor or "professionals" running the show. You see how other people are manipulated or convinced that joining XYZ program will make them an outrageously successful investor in no time. I expect most people on BP will see right through all the bells and whistles to what the events really are, a sales pitch. Just my $.02 though.