All Forum Posts by: Drew Palmer

Thanks @Steve Babiak  - i see your point on DIG and HAPCO being more localized.  Its well worth the annual fee (which I recall is about $100) if you can find some great partners.  

Eddie, it's a bit outdated because some banks have changed ownership. I've done BRRR loans with both East River Bank (now DNB First) and with Royal Bank. I'd recommend both. Best of luck.

Good point, I think it has about 8 banks on it now.  I am focusing on banks that do work in Philly (not sure about burbs).  Like I said, smaller loans under 1MM.  3 that I've found are offering small multi fam loans and a handful that are not doing it now.    

I am in the process of doing a cash out refi on a BRRR for a small multi family in Philly in the range of 200K. Am compiling a spreadsheet with terms, bank names, etc. If anyone would like a copy, hit me up off line. What I'd like to barter in return is for a lead for either (a) good Philly based handyman contractor, or (b) a good GC who has experience with multi fam, Philly permits, etc.

Hope to hear from folks!  

From a buy and hold multi family perspective I personally think there is over-saturation in the "expensive" apartments - 2000/mo and up.   Philly is not NYC in terms of unlimited appetite for high end apartments.  

A couple things I'd consider are: 

* Use the Philly zoning beta website to see what the current use/occupancy is http://www.phila.gov/zoningarchive/

* Let's say the current use is duplex.  RM1 zoning is good, but you need a certain lot size to do an over-the-counter conversion from 2 units to 3.  You need 1080 feet to get 3 units.  Here is my cheat sheet hope it helps: 

• 1)Go to Philly Code and look up the rules
• a.http://www.amlegal.com/library/pa/philadelphia.shtml
• b.View code
• c.Click More
• d.Expand title 14 (Zoning)
• e.Expand Use Regulations
• f.Expand Use Tables
• g.Click Residential
• h.Go down to Tables and find yours
• i.Then read applicable notes
• 2)See if an Overlay applies
• a.http://www.phila.gov/Map?#id=757bbd2d07704a9bb684a1e88ca681c9
• b.Type address in upper left
• c.Hit areas in pop up boxes to the right
• d.Does it show Overlay District?
• e.If so go to 14-500 in code and read restrictions 

Troy, sorry i missed it but I will come next time.  I was literally just up in Brewerytown today at iMunch and should have pinged you! 

You have to have the right zoning code like RM1 or Commercial to permit a conversion by right as Max says.  Then there are other things you want to look at too.  Based on the square foot size of the lot, it will allow for certain # of units.  If you read the Code, you can find tables that show all the math on what # of feet equals what # of units.  Lastly, you want to see if an "Overlay" zoning map applies and if so what the restrictions are.  

Sure, I will PM you and we can discuss a bit more.  

It's a buy/hold but the plan is to do a renovation and cash out refi with a commercial loan (its done via an LLC). we paid about 47k per unit. the renovation should be about 20k/unit so we will be "all in" at 67K per unit. based on future rent levels and the debt service coverage as well as current appraisals in the area, we feel pretty good that we can pull the 67K out upon the refi. we should grab coffee in six months and see how we did!!