All Forum Posts by: Kevin M.

@Kishor Y. these are all good questions- but the answer is unfortunately "it varies". Property management agreement terms vary widely by region and by company. Some sign leases on behalf of their owners and handle almost everything, others just take care of the logistics and make owners sign/fill out forms/etc. 

I will say this- if they operate without insurance that is a huge red flag to me. It means they don't care enough about their operation to protect their own business, so why would you trust their business to handle your valuable assets?

I've NEVER heard of a reputable PM operating without an agreement. How do you specify what actions they are authorized to take on your behalf? How are they compensated? What happens if they agree to a $10k repair on your home without prior approval? 

I think your hesitations here should be your sign to look elsewhere. But again- different markets vary. Hope this helps. 

It's my understanding that @Spencer Gray is correct. My wife is a commercial real estate attorney and says that is the exact reason why commercial terms are typically for multiple years. Many give the tenant rights to renew as well. Might be worth asking a lawyer about the best way to handle but I think having a written lease is important. 

@Harry Brodsky I like all the neighborhoods mentioned by @Dennis Wasilewski. I will also chime in and say I've been managing around Temple for a few years now. The tides are shifting toward over-saturated around Temple with the introduction of multiple high-rise apartments built in a 3 block radius of campus. Do a quick search in Zillow for open apartments and center your map on Temple campus. Your screen fills with dots just west of main campus. It's crowded. 

That being said- if you can stay one price tier below the main apartment/student housing competition you can find plenty of students looking for a deal. This typically comes with timely rent backed with a parent co-signer. Hope this helps. 

I work with out-of-state buy and hold investors who rarely step foot in Philadelphia. I would say a lot are from NY, California, or other more expensive markets. It’s funny because there is about a perfect split of BP investors who think Philly is high tax versus low tax. Following to see some investors chime in...

What does your deed say? It's possible your neighbors encroached on your land. I would look at your deed first. it might be worth a survey followed by a sit-down with a real estate attorney.

I'm completely unaffiliated- but I've been using Hemlane (new software) and I'm very happy with it. My owner clients have been very impressed too. 

@Tom Doherty I have no idea what kind of experience you have when it comes to Philly electrical work but just wanted to chime in to recommend you find someone reputable who will pull ALL proper permits to legalize the work they're doing. Just got burned bad on a property in Philly that had work done without a permit (long before I purchased) and the City slapped a bunch of violations that will now require a ton more work to get cleared. Best of luck with your project

Antonio,

I'm not sure if there is a residency requirement (which might be federal law?) but I'm happy with PNC. They are headquartered in PA. They have great in-person service and a robust online banking system. Best of luck in Philly let me know if you want to talk property management.

@Chaits J. buying lots for development is a complex process. Some of the lots are owned by the redevelopment authority and working with them is a whole process. Then you have to worry about zoning. Lot size/shape (frontage is important) and you have a lot more players you need to work with. GC, architect, construction lender, etc. Then you have to work with L&I which can be a nightmare. I would shy away until you really get connected and know the game here in Philly. 

1. Turn-key can work out for house hacks. You can even find new construction that works for house hacks in an up-and-coming neighborhood

2. Going all-in will get you the highest ROI. You are leveraging your benefits to the max so your returns will be higher in theory. Remember- higher returns require more risk. Since you are young you can be more tolerant.

3. Multi-family. Definitely. 

4. OPM. Other Peoples' Money. Put the least amount down. Leverage your benefit. 

Good luck.