All Forum Posts by: Kevin M.

Another perspective: Greater risk = greater returns. Anyone can be a landlord in a friendly owner environment like Oklahoma, so you'll find mediocre returns. If you are willing to strap on a bullet-proof vest and buy a property in Philadelphia where landlords are essentially enemy combatants in the eyes of the city, you will be competing against fewer investors able/willing to take on the risk and find higher returns. Even within Philly I find D-Class and C-Class properties, if done correctly, have significantly higher returns than B or A Class units. If it's easy everyone does it.

You should look up the current rental license and see if it's for 1 or 2 units. Philly has a 'use it or lose it' rule for variances where if you stop using the property in accordance with the variance for 3 years it's gone. 

If the rental license is good for 2 units and there are no open violations I wouldn't be concerned. If the rental license only shows 1 unit or there are open violations I would worry about a variance and CO requirement that could be an administrative headache. 

Cliff,

I'm a property manager so we've done dozens of these recently. Send me a message and I'll refer you to a reasonable and reliable tester.

-Kevin

I went through a similar situation with a property purchased as a triplex, and even with an active rental license for 3 units- but unraveling a 6-year old L&I violation ultimately caused them to demand similar. Full plans of everything. Opening up walls. Adding drywall in places they couldn't confirm the fire-rating. Upgraded sprinkler system. Electrical permits/work. Plumbing permits/work. All for a building recently built in 2011. The contractors doing the 'required' work were laughing at how ridiculously pointless it all was. A total nightmare. 

No one is on the same page. No one is specific in their requirements. No one responds to email. Don't expect anyone to be reasonable or clear.

@Chris K. has talked about this in a few other threads. 

If the property is deeded in your personal name, the rental license held in an LLC will make no difference to your personal exposure to liability. If someone trips on your sidewalk any lawyer taking the case will immediately search public records and bring the deeded owner into the case. Probably your LLC 'managing' the rental as well. So you'll still personally be a named party in the case.

Creating an LLC to manage the property is probably more trouble than it's worth. You can still get anonymity with a virtual mailbox, Google Voice number, and LL-specific email address used for RE activities only. Do this along with a big fat GL insurance policy and umbrella on top of everything.

*mandatory " am not your lawyer" disclosure, this advice is worth what you paid for it..

Yep you'll almost certainly need sealed plans. They are pretty much phasing out EZ Permits for any non-owner occupied rehab work. 3-units also typically triggers fire alarm requirements and sprinkler system. 

A contractor license isn't a bad idea but you'll likely have to have GL and worker's comp insurance. Maybe even OSHA cert?

I use a lot of "almost", "pretty much", and "likely" because it honestly seems like the standards/requirements for permits in Philly change with the weather. 

@Alex Capozzolo congrats. Any photos? BR/BA and target rent price? Do your numbers require self-management?

You don't often see projects accomplished in total under $100k I'm interested to see how it turns out.

Extremely unlikely you will be able to use the legal process to force out an unwilling tenant in Philadelphia, ESPECIALLY one paying rent with a valid lease agreement, anytime in the next 6 months. The deck is heavily stacked in the tenant's favor now more than ever. You need a royal flush.

The pet argument will get you nowhere in Philadelphia Landlord/Tenant Court. 

Cash for keys is your best bet.

Buy it in your personal name- then go to the courthouse and change your personal name to Jared LLC. Checkmate.

@Kenneth C. the lab used to process a majority of our properties is called Accurate Analytical Testing LLC out of Michigan.

Are you a licensed lead tester? Remember that the samples must be collected by a licensed technician in Philly. 

If you have only a few homes it may be cost/time prohibitive to get licensed and do your own testing/sampling.

DM me I can refer you to our reliable/reasonable tester.