All Forum Posts by: Shay Sherbotseli

It's really best off to have an agent with access to the MLS to pull accurate data related to comps when underwriting a deal.

When it comes to areas, think about what surrounds the area in addition to the class of neighborhood. A class neighborhoods will be tough to cash flow, because of the expensive entry point in price. But these properties will likely appreciate nicely. Whereas, C class neighborhoods will likely cash flow nicely because of the cost entry point is a lot lower. But then you might deal with higher tenant turnover, less appreciation, and headaches all around. 

You might be best fit finding those in between deals. 

I'd be happy to talk a bit further if you'd like. 

My guess is you are a victim of analysis paralysis. Keep in mind you are looking for 1 investment property. Any of those places will yield that. It would be different if you were looking to buy 50 and the demographics really mattered.

In terms of the purchase, it's all about location, location, location first. Drive these places and get to know them. You will get comments here that steer you towards A class properties - or C class. What are you looking for? Getting to know the towns, neighborhoods, streets and actual properties is essential and far more important than just one town name versus another.

At this point, you don't know anything about your future tenant, so I wouldn't assume they are trying to get to the city. Closeness to transportation is always better, but that is a tradeoff too. It could mean closer to traffic, noise and crime which is always worse. You may get retirees, tenants who work locally to those towns, airline pilots who are rarely home, etc. Don't focus on that, but rather what would be attractive to generic tenants for those properties.

I have 12 3BR SFRs and 1 2BR SFR in Delaware County, suburbs of Philadelphia. All have worked out well. Some are retirees, some work in Philly and NJ, some work locally and some just don't work. My 3BR rents range from $1,425 to $2,000 which shows why it is almost impossible to give you meaningful rent data without you being more specific.

At this point, I wouldn't discount the online systems such as Zillow so much. Don't focus on the ZEstimate, for example. Focus instead on actual asking prices for sales and rentals. That will give you a good idea of where the market is for the areas you are interested in.

Hey Shay! I am an investor and agent in the Phila area. The main line is an excellent market for rentals but it can be very pricey as many of the spots are Class A RE. 

Generally the suburbs are outperforming the city in terms of rentals. Personally there are some really strong suburb areas that I would much rather invest into than Phila - lots of it is due to better landlord policy, higher demand for rentals, less competition for rentals, less headache than dealing with Phila, higher quality tenants and less risky. Overall better experience for a landlord. That being said there are also areas in Suburbs I would avoid like Norristown and Pottstown due to their nature (class C or lower). I am more than happy to connect and chat more about the market! 

Reach out anytime

You're all over the place, and as suggested above, need a plan.  Perkiomenville, Collegeville, Norristown and Pottstown are all in Montgomery County... and are vastly different places with completely different markets.  Who's your market?  I've lived in Montgomery County for 25+ years and do everything I can to not go into Philadelphia.  Taking it one step further, the vast majority of my tenants don't work, so the commute time discussion is completely moot as far as my plan is concerned.

@Shay Sherbotseli The tax a withholding on the gross sale price of the home. You cannot defer it. You'll also pay income taxes along the way on the operation of the property. You'll need to start with 15-20 units to make the tax compliance and sales penalties worthwhile. 

@Shay Sherbotseli Are you a citizen and resident of the Netherlands? Why aren't you concentrating your investments there?

You will be well served to learn about the withholdings that will take place if you ever wish to sell or exchange the real estate you buy here. Foreign nationals lose a good chuck of their payout. 

 Rent control is relevant if you have residential tenants. It doesn't apply to commercial business tenants that I've seen.