All Forum Posts by: Rich O'Neill

Hi Tolu Malik Welcome to the site! As you have already read, you should really start to hone in on exactly what type of investing you want to do and where you want to be. Those areas you mentioned are very different markets from each other. Chester County is much more rural with bigger lot sizes and bigger values. I recently read that it is one of the top 100 wealthiest counties in the country. To me it is more of a flip market, except for a few small towns like West Chester, Downingtown, Coatesville, and Kennett Square (I know there are others but these are the ones I am familiar with) where there are plenty of renters. Delaware county is more suburban with regional rail, buses, and closer to the city (except Garnet Valley and some others which act a lot like Chester county). I have not seen values going up for the most part in the last several years. Seems to be more of a buy and hold area where you should focus on cashflow. The others I am not as familiar with. Philadelphia is definitely block by block and you should really do your homework before buying there. I don't know much about Bucks or Montco at all so I will not comment. I hope this is helpful and please let me and everyone else know if you have more specific questions about areas. Good Luck!

No problem Keni. Glad to help. In response to your question about when to start: my opinion is start NOW! The mistake I made was taking too long to get started and now I feel like I am behind. I have been researching real estate for the last 5 years through college and my first few years of working and wish I actually made it happen sooner. I now have one rental and have my second under agreement but I feel like I could have been much further if I had just jumped in earlier. There is always a way to make it work you just have to find it. I learned more in my first year as a real landlord than the previous 4 years combined. 

Find the deal, analyze it yourself, then post to the forum. People here are so willing to help. They will give you honest feedback on the deal and then you can make your decision to move forward. 

Don't fall victim to analysis paralysis! The advantage you have now is flexibility and the ability to quickly pivot. 

*Rant over* Good luck Keni! 

Welcome @Keni Etienne! Everything above is totally true. i would also add: be very, very clear and even conservative on your ARV's (After Repair Value) especially in Delaware county. In my experience Delco is a cash flow area for buy and hold opportunities, and tough to create additional value through improvements. There is not much spread between a gutted REO and a well kept retail unit. That changes as you get closer to the main line and Garnet Valley areas (where I don't have as much knowledge), but be cautious in the southern part of the county. A rule of thumb is the further you get away from I-95 the more values will support flipping. If you consider buy and hold instead there is definitely money to be made!

Good luck and let me know if you have any questions! 

Hi Kristen Thornton Welcome to the site! I have been researching Delco for the last year or so and finally have my first deal under contract. In my opinion, flipping is tough here unless you are in the north and/or western part of delaware county where values can support a solid ARV. I am mostly looking in the Collingdale, Ridley, Folsom areas (along McDade Blvd) for buy and hold opportunities. There is not much appreciation available there since REOs are going in the $40's and repaired retail props are going for maybe $80-100. To me it is a cash flow market. Like I said, if you get up closer to the main line or Garnet Valley area, there are better ARV's and you may want to start looking there if you are sure you want to do flips. Just my opinions. Let me know if you want to chat!

Hi @Jeremy Taggart, @Ryan Hoer is right, The Borough is awesome but the student rental permit issue can be a big one. Whenever I see props with a student rental permit attached their prices are incredibly overinflated because they are pretty much the only offering available. If you do not need to rent to students then the market can be pretty good since the town is growing rapidly, but a few large apartment and condo buildings just went in which have increased the supply tremendously and could lower demand. 

Just some things to consider. Welcome to the area! 

Welcome Bob! I live just south of town. What area are you thinking of investing in? The Borough is nice for obvious reasons but keep in mind that student rentals need to be grandfathered in otherwise you cannot rent to students. Plenty of opportunities in Chester county or down into Delaware County. If you want to catch up some time, I love meeting with anyone in the area that is doing it. I have one rental now out in Kennett, have one under agreement in Collingdale, and a few leads on a third. All buy and hold projects. If you haven't done so already, make sure you read through the the Forums and listen to the podcast. All great stuff that can help expand your horizons.

Hi Richard, I don't have a lawyer for you, but i do know that one of the current concerns with Lease Option contracts as it relates to Dodd Frank is the seller "becoming the bank." My understanding is that the issue comes up when you attribute rent to the principal price. There are a few others but I would suggest reading Bill Gulley's post in this forum here: https://www.biggerpockets.com/forums/83/topics/105...

Lots of great info in there that is more specific than I can be. As always, you should consult a lawyer but reading that post will help you be more educated in your discussions! 

Good luck! 

Hi Evan, welcome to BP! I live right around the corner from your family's office. Cool stuff! As far as the deal, it really depends on what you are looking for. If you want a cash flowing property it may work at that price. It is a bit under the 2% rule but on that high value that may work. I mostly work in the $50-100k range. If you want to flip it then I think it is too tight to work. Your all in budget is equal to the low end comps. To be on the safe side with a flip, i would personally count on selling at the low market comps and anything above that is bonus. I hope this is helpful for you and if you need anything else please feel free to reach out!

Hey Adam, I am always looking for Buy and Hold properties in the Delco area. I don't love Darby or Chester but the rest of those boroughs are all interesting to me (Collingdale and Sharon Hill is where I am mostly focused on at the moment). Open to doing a flip or two but mostly focused on buy and hold. 

Hello BP, 

I am getting ready to start marketing to distressed sellers to find deals. I currently work with lawn care operators on their marketing and one of the things we do is "guerilla marketing" where we use things like frisbees and beach balls thrown on every yard in a neighborhood to market to a particular neighborhood. In lawn care, customer density is crucial to profitability. 

Has anyone done anything like this to market for deals? I know I don't want every house in the neighborhood but it is a great way to get people talking and build a brand. Is frisbees the right way? Is something like a stress ball handout or something similar worth it? Looking for the best "outside the box" marketing techniques you all have used!