All Forum Posts by: Nicky Lisewski

Hi Brandon, I'm an agent and investor in Philadelphia.  From my experience, not a terrible idea, particularly with rates so low.  Personally, I bought what I thought would be my "forever" home in 2014 and sold it in 2018.  It worked great for us.  We had bought a fixer, in a good area, and we bought it right.  It was great to take that gain on to the next place.   What areas are you looking in?  

With my first house hack, I was paying about $300 out of pocket a month when I lived in it. That being said, I got it with an FHA loan, and it appreciated and now also cash flows.

I bought that triplex thinking I would be living there for a while. I actually lived there for a year only, so, in hindsight, I could have bought in an area that was less ideal for my work and life.  

If you are looking for cash flow, look at the neighborhoods the developers are going - Germantown, Kensignton, Brewerytown etc.  Good luck.

Take a look at the FHA program and HomePossible. Both are low down payment loan products. I bought my first multi with an FHA loan. Conventional 20% down products would give you better cash flow though so it really depends on your goals and personal financial situation.

@Daniel Nieves

Philly is a great place to invest. I’m an agent and investor and I’m surprised at how busy we are right now.

Are you looking for a multi purely as an investment or as a house hack (if you don’t have a primary yet)?

Are you going to make a cash purchase or will you need a mortgage? If mortgage, talk to a lenders and get prequalified.

How familiar are you with Philly? First look at neighborhoods and decide where you want to invest.

Then start looking at properties. You want to look at enough that you can spot a deal.

Feel free to reach out with more specific questions.

I'd look into getting a multifamily property with your FHA loan - duplex, triplex, quadplex. That way you could get rental income even while you are living in the property. Househacking is a good way to get started and learn about landlording as well. There is a lot of information on BiggerPockets about househacking. What neighborhoods are you looking at?

What neighborhood in Philly?

Its hard to give specific advice without the calculations, but if your numbers work, it sounds like you have some good options.  I looked at 40 properties easily before I bought one.  I'd advise you to do the same, and run the numbers on everything you see.  You want be be confident and ready to go when you see a good option.  

@David Cha

House hacking is how I started with real estate. Particularly as you qualify for a VA loan, its a great way to get started. As a first step, I'd run the numbers with the property fully rented. You could use the BP calculators. You want to know it cash flows after you move out.

I also have an Excel file that allows me to consider what my living expenses would be when living in the property.

Personaly, I'd also consider getting roommates while living there, and I'd also look into properties in adjacent areas to get the benefit of neighborhood improvement.

Finally, appreciation is the cherry on top, but I would not count on it.

@Hanlan Huang

Personally, when I got started, I walked through properties I was interested in with a contractor. There really is no substitute for experience. In the pre-pandemic days, Diversified Investors had van tours of remodels. Very helpful information.

Are you looking for a house hack? If so, I’d look for the least nice area, primed for appreciation, where you would be willing to live. Your first deal might not be a home run. If you find something that minimizes your expenses and would cash flow once you moved out, I would look twice.

As @Kristin Feerst mentioned, Philly is block by block.  So it is important to know the area well or work with people who do.  

Neighborhoods here also are rather large.  So Kensington can be anything from new build near Fishtown to the much cheaper areas farther north.  I've worked with investors who are buying c class in Kensignton.  Even north of Lehigh, there are new condos and live work spaces coming in so I think its a good appreciation play long term.