All Forum Posts by: Mike B.

@Scott Weaner I've seen some units available in trenton for cheap (but I'm aware at that price, prob only certain renters.. C/D neighborhood I assume).  Is it worth the time to do MFH rentals in Trenton?  Or do you suggest alternate areas near Yardley/Morrisville?

Interesting scenario; for me I would pay down any personal debt I had (and even my own home). Secondly I would pay down (partially/fully.. depending on situation) my top 3 rental properties (e.g. best location, can bring in the highest rent). That way I'm earning more Net proceeds/month and can quit my W2 job (that's my dream though). 

of course from a leverage standpoint, I think people will say to go out and buy another few properties, but if your hands are full already.. work less (smarter) and pay down some debt.  Leave yourself a good emergency fund (maybe $31K) and use the remaining $100K to pay off something big.

Lee Gierszewski great idea. I always prefer to do central air, despite additional upfront costs as you usually recoup that in reasonable time and also helps with ARV

great thanks @Mark Redmann

@Lee Gierszewski - on my recent flip to rent property, there was gas forced air with ductwork in place.  Heater was old and dead, but still ended up paying $6500 to install central air system using old ductwork and adding in (2) additional returns (1st floor and 2nd floor).  This included 1.5 ton condenser, removal of old unit, etc etc.  Property is a 3 bed/1 bath, 1000 sq ft home. Of note, the quote just to replace with a new heater only was $2400, so I opted to upgrade. 

At any rate, not every home (rental or sale) had central air, so I did it as a 'perk' in the event I sell the property down the road.. I'm not wasting money twice on the heating system.  Also it's a big selling point (or renter's favorite) to have central heat and air in Philly.  Definitely supports the higher rents, etc.  For my rehab/rental model, it works for me.  Run the numbers on your property.  If you can get your money back in 2 years or less, I think it's worth it (esp if the ductwork is already there!)

My big concerns as noted above, include the condition of the: 

Electrical - is it newer wiring or knob and tube (and do I need to re-wire the home)?

Plumbing - old pipes or copper present?  Drain line.. is it the old cast iron and look crummy or is that good?

HVAC/Heat - does it need replacement? Do I need to upgrade gas forced air to central air system?

Walls - plaster or is drywall present already? 

Other big ticket items to consider: Flooring and bathroom/kitchen next.  

Roof - I don't care about as much.. in Philly we have flat roofs, so it's much cheaper to fix and/or replace (vs. shingles).

Always pay more attention to your 'big ticket' items.  Bad smells, needs new paint.. no big deal and easy/cheap to fix.

Thanks @Mark Redmann good to know, esp about the "permit dollar value" of work being done.  Will be sure when pulling the permits I'll have my GC list actual costs to assist with the tax abatement. 

Thanks @Jon Ree and @Kerry Baird

Also I'm specifically interested in application and approval process (I saw forms online but how long did the process really take you) and any hurdles you encountered along the way. Feel free to PM me if you prefer. Thanks

Anyone have any experience rehabbing/flipping a property in Philly who applied and was approved for 10 year tax abatement? I will be doing a 50-60K rehab on a property near 13/Oregon next month and realized I may qualify. I say "may" as there aren't good specifics on the city website about who does and doesn't qualify. Based off their non specific info it appears I would be fine. I'm doing a partial electrical rewire, updated plumbing, gut and new bathroom, new kitchen, new floors throughout and finished basement. Appreciate any help in advance. Thanks!