All Forum Posts by: Parth Shah

Hi All, 

    I am trying to obtain my first property and have checked out this property in Newark, NJ.  It is in the Upper Clinton Hill area of Newark. Here are the numbers, tell me what you think:

Purchase price - $399,999

6 unit multi-family - gut renovated 3 years ago

Gross monthly rent roll - $6600 that's with 100% occupancy

Taxes - $13648

total expenses- 23,208 which includes taxes, maintainence,insurance,sewar/water.  Does not include vacancy.  So add another 10% which would total around $30000.

I would be putting down about 25% at 30 years.  Thoughts?

Hello all, 

    I've been doing a lot of research on this forum and have driven to a lot of the Philadelphia areas; the 'hot' neighborhoods that are usually talked about on here are Point Breeze, Passyunk square, Pennsport, Port Richmond, Fishtown, Brewerytown, Kensington, penn's landing, and northern liberties.  

 Few questions:

1. I am interested in obtaining 3 bed/1 bath rowhouse/townhouses in these areas. What are the typical rents for a mid-grade renovation? Say the house is bought for $50k and has 30k in renovations for an ARV of ~$100-120k? What would typical rents be?

2. What are the other fees aside from property taxes that the city would charge on a home?

3. Which areas would be best for a buy and hold strategy?  

4. Which areas would be safest?

I'm not sure!  That's why I need you guys............Can somebody chime in on areas in Philadelphia which are safe/investor friendly where I can purchase for a reasonable amount?  I would like to keep the purchase price <$150k if possible.  

Hey all,  

      I wanted to introduce myself to the BP community.  I have learned a ton from just browsing the site for the past few months and this website is an incredibly powerful tool.

A bit about myself:  My name is Parth and I am a healthcare professional in South Jersey.  I have no real experience in real estate, however my father has some properties in North Jersey.  The future cash-flow, tax-benefits, and the ability to have a tangible asset hedged against inflation is what attracts me to real estate.  My goal is to have my first purchase by the end of the year.  

What I'm looking for:  I have saved some money and am looking to invest in single-family or multi-family investments in the Philadelphia area in A/B neighborhoods.  I am not interested in run-down/crime-ridden neighborhoods where I will have more headaches than returns. As a professional, I would like to invest in areas where the headaches will be minimal and the returns as high as possible.  I would like to invest in properties between $100-175k to begin with, I can put up to 40% down.  I don't want to be over-leveraged either.  Please advise me on some areas as well as some people I can connect with.   Ideally, a cap rate of at least 8% would be great, however, cash flow isn't as important as principal pay-down and minimal headaches with managing the property.  

I have also looked into Turnkey properties, howeer, I would rather stay local to Philly for now.  Thank you, and keep up the great work!

The thing you all don't point out is the fact that after 20 years; that house is going to need a complete rehab costing $75k; or you will be paying for this during your 20 years of 'principal paydown.'  Once that factors in, turnkey might not look so great down the line. 

Which areas cash flow well and are B, C areas in philadelphia?  Do you guys have any examples of prices/purchase prices/rents in the said areas?  Thanks.