All Forum Posts by: Rich O'Neill

 This is a great point and the reason I think that both supply and deal volume will remain low for a while. Of course there will be the sellers that need to sell and there are very few buyers for them right now, especially if it's a weird or "scary" property. 

Also, @Jimmy O'Connor did an excellent write up on this a while back. I am sure the numbers are dated by now but gives you a starting point. https://www.biggerpockets.com/...

 Definitely worth looking in the suburbs. With rates where they are the numbers are likely to be tight anywhere, but you may be able to make it happen outside the city. In Delco there are plenty of turnkey or close to turnkey properties for under $175k that should rent in the $1,600 range, which should theoretically get you close to $200/month. Buy a duplex/triplex/quad and you're in even better shape. 

In the same boat here @Salvatore Lentini. I too have had brokers calling me which is abnormal. Especially on development deals. As soon as I open an email it seems like I am getting a call the next day. On the resi side there are still lots of sellers with delusions and will take some time to adjust. 

@David Chen check out @Kevin M. from Otter Property Management and @Yuriy Skripnichenko of TrustArt for Property Managers. I have had clients that worked with both and had good reviews. I always recommend interviewing a few because they all have different pro's and con's. 

For investor agents, @Jimmy O'Connor is not an agent in the traditional sense but moves a lot of property in Philly. @Rob Lawrence and @John Knisely are 2 good investor focused agents. 

In short, yes build the team now and be ready to jump. 

@Lekan King yes @Eric Greenberg gave you the correct info. 3+ units is considered commercial in Philly and you need commercial permits, which generally requires architect drawings and building plans, even for cosmetic work. It's a bit crazy but the way it is. This is why lot's of people don't pull permits for work that is "gray area" as to whether you need them or not. 

@Brian Falcon If you haven't already found an outlet for this give me a shout. We have a mortgage broker in house that is incredibly sharp and should be able to help with this. 

My only question mark would be the ROI on making the homes Zero Energy. How much more does it cost to build one vs. traditional? How much additional appraised value is created? Maybe it's a no brainer, but I could see the lender asking the same thing and getting wary of the project because of concerns that the upside doesn't balance with the added cost/risk.

Absolutely not trying to dissuade you- I love the idea- just be ready to hear that from lenders. 

Hey @Marisa Amirian! If this deal is still alive give me a shout I have a few friends that buy in DE that might be interested depending on where it is, and a few more that wholesale properties there that might want to JV on the deal with you.

Glad you got this figured out. Like @Jay Hinrichs said in some of these rust belt areas and older markets, floor sags are the norm. Philly is notorious. I have lot's of clients that get nervous about it but like @Bruce Woodruff said, a few inches over 20+ ft isn't a big deal usually, but any more than that is when you start looking closer. Major cracks or bows in the foundation walls are your give away. 

Interestingly, this looks like a block foundation, which would tell me it is a little newer than what I am used to. We deal mostly with fieldstone foundations here. With block, you should be able to see very easily if there are cracks or bows. 

More importantly, the verbal lease, gas being off, and other situational red flags would have done the deal in for me. The work is all stuff you can account for, the other junk can be a huge headache. 

I use RentWell Property Management in Delco. I know they do Chester County and parts of Montco, but not positive they do Bucks or all of Montco. Like @Drew Sygit said, you definitely need to do your own due diligence. The good news is that this isn't your first rodeo with PM companies, so you have an idea what you like and don't like. 

Good luck!