All Forum Posts by: Account Closed

Hello, I have an interesting question. For the state of NJ and PA are you allowed to rent out 2 bedrooms in a 3 bedroom house that you are living in/ purchased as an owner occupied household through a 203k product. When you bought this property you signed an affidavit that you would live in the house (living in the one bedroom) yet you’re renting out the other two bedrooms. Would this be an issue for FHA? Is this technically a rental property? How should it be classified with the city? Thank you!

Crazy.. And they're trying to add more protection to renters in Philadelphia. I'm curious as to what they're actually drafting and how it will impact us landlords

Originally posted by @Ridvan Hoxha:

Thank you all for the replies.

@John Warren, you are right about the REI market at the present time

@Marion Nicholson, that would be my first choice but but it seems the local market here in Philadelphia has "run away" from us. Buying a turn key business is simply my way of "getting" a better paying job for myself and look for REI opportunities as I would be a bit more flexible than now working for a corporation.

@Drew Shirley, I am only looking at existing turn key opportunities that I can add some value on. I totally agree with you on the new restaurant thing and I would not do it at this point in my life. It just seems so hard to find any good multi-unit deals in and around Philadelphia and I am a bit weary investing in far away places.

@Account Closed, thanks for the suggestion. That would be my first choice but, correct me if I am wrong, since you know the local market here better than me, but it looks like it's pretty hard to find deals tjhat make sense with that kind of down payment. Feel free to reach out privately if you come across anything.

 Yes you're right. Deals do some on the market that make sense but go very quickly! If you wanted to invest into C areas, it's possible but for each project you'd need most likely more than 10k down

@Kenneth C. stay patient, deals will come!

@Ridvan Hoxha My recommendation would be to go the RE Route. The ability to leverage your 100k over multiple projects makes it more attractive for additional RE income and also long-term appreciation. While your renters pay down your mortgage you can take advance of tax benefits, appreciation and cash on cash returns.. building your net-worth. If you have a solid successful partner for the restaurant business I wouldn't count it out but I'm sure you're going to have to put in more time.   

@Scott Carrillo If you're looking for investment opportunities in Philadelphia, I'd be happy to assist you with a list as well. You would take on 100% of the profit since you're putting up the risk. I'd manage the property, connect you with a GC and help with acquisition (I am an agent). I believe in Win-Win and also being fair in deals. Looks like the Guru is looking to make some money rather than provide opportunities  

Never take a PM word on rent roll or even the seller. VERIFY everything!! Ask for a copy of all the previous 2 years rent roll statements and compare OpEx and Rev compared to the assumptions. Also Never buy anything with a Cash on Cash at 2.27%.. that's terrible if you're investing for cash flow

@Michael Singh Our RE office is in the Fishtown area so we are very familiar with what's going on. Mary is also correct, any PA licensed agent who is familiar with HUD can serve all of PA

@Antonio Artusa I'd be happy to point you to come local bank in the city. I even know of some banks that don't report on your credit that you have a mortgage... PM Me

@April Molina I just sent a connection request. Let's connect on how we can partner together going forward.