All Forum Posts by: Michael Enriquez

@Almond Matthew congrats! It looks great! 

Touching on what @Thomas S. mentioned, I believe what he's saying that, yes, there is $385 left after PITI but there are quite a number of variables that you need to budget for as far as expenses. Although the property is new and under warranty now, what happens 30 years down the line when the property potentially needs a new roof? Capital Expenditures should always be budgeted for. What happens if there's a vacancy? The mortgage still needs to be paid so it's good to save a little at a time and be prepared for it rather dig into your personal funds. Additionally, even though you may be managing the property yourself I would still budget 10% of the rent to pay yourself for the time you put in.

Hey! I did notice what you're saying about allegheny. The closer to port Richmond the better the area appeared to be. 

Hello All

Thanks so much for your responses and advice. Today I embarked on a journey, a friend and I went down to Philadelphia today and scoped out listings that I liked.

You guys were on the money with philly being a block by block city. I drove and walked around the Kensington area today and noticed a trend. It seemed areas closer to the main streets (Allegheny, Lehigh etc..) didn't have as much if any rif raff going on as those blocks buried amongst the side streets. It was rather alarming to see blocks full of adults hanging out on a Tuesday during normal work hours and openly use drugs but I'm glad to have surveyed the area personally as it has helped me narrow down my search for my first deal. 

@Tiffany Campbell to my understanding you only pay garbage if it's a multifamily unit which will be $300 annually. SFR's don't pay to have the city pick up garbage. Sewer is included with water as well.

interesting point you raise. I'm in to hear what the seasoned pros have to say. 

Thank you all for the replies. 

@Mark Nolan I was looking into setting up a SD401 but to the only plan I have is with the employer I am currently with now. So no dice. 

Hello fellow BP'ers! 

My name is Michael. I currently reside in NY but have been considering in diversifying my investment portfolio to include rental properties (this has always been a goal of mine). 

A fellow co-worker of mine currently holds a few properties in the city of Philadelphia and urged that I do the same. On paper the deals appear to cash flow well (including expenses like CapEx, vacancies, repairs, utilities etc...) and I can purchase my first deal in cash utilizing a 401k and 457 plan loan. However, I do have concerns. I haven't visited the areas I've been looking at personally but a Google earth tour reveals a lot of boarded up and run down properties. I grew up in The Bronx (New York) which most would believe to be the worst of the worst but is this the norm for Philadelphia. I've been looking in the Harrowgate, upper Kensington and Richmond neighborhoods and looking to spend no more than 20-25k excluding repairs that may be needed.

Are there any Northern Philly investors here that may offer their insight, share experiences and/or advice?