All Forum Posts by: Matt I.

@Marc Winter

I think the millennial mindset is more about quality of life than some sort of generalized short sighted financial obstinance.. The world is massive: there are people to meet, conversations to be had, businesses to start. All this opportunity can some times outweigh what you pay for a small space, especially when it means you're now in the network. Consider the fact that this metaphorical person might bike or walk to work, eliminating the financial liability of a car. Or increased job security due to the density of employment.

Is city living really another trend? Maybe in a couple years it will disappear along with $12 avocado toast and thrift shop wardrobes. Maybe it's the architect in me, But when I think of quality of life I think of everything I need for my survival within a reasonable proximity to where I live. I think of having a smaller carbon footprint by not relying on a car to get where I need, or sharing resources and infrastructure from a central network.

I recently bought a house in an "up and coming" (gentrifying) part of Philadelphia. I see young families here, as well as Middle aged and elderly people. If the school systems are decent then why leave? So we can have more "space" for our "stuff"?... Who needs stuff anymore when your smart phone is a flashlight, GPS, calculator, and computer. We can certainly learn a lot from a minimalist lifestyle.

I think the choice to live in a city is rooted in personal values that differ from other generations. I guess in the next decade or so we'll see just how sustainable city living is, or if it really is just a place to party and dump your cash. just figured I'd pass along my two cents,

Cheers!

Matt

@Eric Luzier I chose to move from central NJ to philly. I hate to generalize, but there is a national shift of Millenials moving out of their bored to death home suburbs and into cities. There's employment, opportunities, and the city lifestyle. I recently moved to olde richmond, a small sliver of neighborhood north of fishtown. development is on just about every single block. Houses are actually more affordable, with a fraction of the property taxes that id be paying in Monmouth County NJ. Not to mention, high density housing conditions means there's plenty of stock to go around.

Message me if you want to chat over a drink or coffee. Cheers and best of luck

Hey Zack. For future investments I'm looking to stay in the Fishtown/Kengsington/Port Richmond part of town. Ideally my goal is to house hack a true multi. I'd be able to rent out my current space, and hopefully positive cashflow with the new house hack.

I'd like to leverage my architectural background to "make" a multifamily, perhaps out of something that is currently a single family but zoned otherwise, in order to maximize my value-add potential.  

disclaimer: Not a seasoned real estate vet (yet). 

Although I say from experience, there's a lot to learn from house hacking. There's no better tuition than going through all the motions- coordinating with lenders and contractors, learning how to gut a bathroom and rip up carpet, having to deal with house inspections and code officials etc. 

Its all relevant knowledge to our field that you pay in sweat equity. 

Also, you can always self educate through more books, podcasts, networking.. for not that much money.

cheers and good luck 

Ryan, I'm a bit farther north towards Lehigh. If you know where cook and shaker is, I'm right on that block! I'd love to hear more about your deal some time. I've been considering organizing a BP meeting in fishtown since there's so many people trying to get in on the market.

@Thomas Caridi awesome! let me know if you want to grab a drink some time. Maybe we could partner on something in the future, cheers! 

@Chris Mason interesting you mention that. I've been doing research to see if I'd qualify for an FHA loan despite the fact that I own a property already. Makes for a nomadic investment strategy, but avoids the need to save up. thanks for the insight!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $159,000
Cash invested: $10,000

Contributors:
Steven Primiano

purchased my first home using a first time home buyer program from a notable bank (3% down, but this isn't an FHA). This 2 bedroom 1 bath is located in a C/B class turning A area on the edge of Fishtown, Philadelphia. I am owner occupying the residence and renting out one of the rooms to a friend from college. currently I am -$500 a month but it beats the prices for most local rents around here. I am slowly making improvements to eventually rent out full time, so I can move on to the next one.

What made you interested in investing in this type of deal?

Eager to get into my first property, I couldn't afford anything in the NJ market (where I was living with my parents). Property taxes are impractically high and Multi families in relative proximity to my job were rare. I was working with a great agent, but eventually we both realized I was looking in the wrong place.

I had recently graduated college in Philadelphia before moving back home, and made the decision to look in 'up and coming' parts of town that were more affordable than NJ.

How did you find this deal and how did you negotiate it?

I was able to negotiate from an asking price of $200,000 down to $159,000. My background in architectural design definitely helped along the way, as I was able to spot thermal enclosure issues which I then pointed out to the inspector.

How did you finance this deal?

First time home buyer conventional mortgage (not FHA)

How did you add value to the deal?

Replace existing carpet with high end pergo
Renovate upstairs bathroom with the intent of adding a half bath to the basement
Other misc repairs and upgrades are planned for future phases of work

Lessons learned? Challenges?

The biggest challenge is moving on to the next deal. Since this is somewhat of an ongoing project, the house isn't exactly making me money yet. I'm a pretty frugal person, but my biggest challenge would be pursuing the conventional route of investing - saving. I'm currently exploring other creative ways and am open to the idea of partnering for a future deal. Skills of value that I could offer would be architectural planning, design, 3d rendering, surveying, and of course hustle.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Steve Primiano is a fantasic central NJ based real estate agent and I would recommend his services any time. Great guy with a hard hustle, and fun to kick back and have a drink with.

@Gary Crawford absolutely incredible and inspiring experience! Vegas prices seem so seductive in my jersey /philly market..

Atlantic city seems to have the ingredients of a successful urban district. A train running from Philadelphia, the integration of more college satellite campuses, and the highest density of casinos and gambling on the east coast. Not to mention its a beachfront city.

In recent years it seems like tri state cities boomed overnight. Years ago nobody wanted to deal with Hoboken, Asbury park, jersey city, Philadelphia... But with more millenials wanting to move to cities, when can we expect AC to have its turn? I even heard there's a 40 minute train line from Philly to AC. As an architect and prospective investor, there are many layers to my curiosity..

This is all just speculation on my part, but I'm curious to know what experiences people have had with investment properties in Atlantic city. Is there a rental demand yet? What about vacation rentals and air Bnbs? Houses well under 100k are abundant which is almost unheard of in jersey, let me reiterate this is beachfront property..