All Forum Posts by: Sheryl Sitman

Us small landlords in Philly are all wondering how and why PHA paid these seemingly inflated rates for those properties. Either bad reporting or something is not adding up.

Tip 1 - no need to be an agent.  You may want to be an agent for other reasons but don't let it hold you back from getting your investing started now.

@Nickolas Gavin  I run the Philadelphia Landlords Connect group and we have created a network of reliable contractors specifically for investors. Feel free to reach out to join the group and get any info you might need!   Unfortunately it is not uncommon to get burned in Philly. I have my own horror stories.

There is a lot you need to learn in order to make this strategy work and a lot of ways you can potentially stumble. With the limited resources you have, you want the first investment to not only be a learning experience but to succeed. Keep in mind that experienced investors have had bad experiences with some of their investments and no one bats 100%. So rather than overemphasizing WHICH market to chose, emphasize finding the right mentor/coach/team because it is possible to fail in a good investment market when you do not know what you are doing and to succeed in a more challenging market when you do know what you are doing.  Try to find experienced, straightshooters willing to do some coaching in the markets you like. 

@Evan Kline I had to make my way through 4 PMs in Philly to get to one that truly serves my needs and bottom line. I have written a few posts about how to select a PM based on my experience in Philly and multiple markets. There is a delicate balance between looking out for you as the owner and creating a profitable management company -- knowledge/expertise, transparency and flexibility seems to be the key components to making it work.  Feel free to reach out.

@Ilir Livadhi I think you are referring to property wholessalers telling you how much the rehab will be - and as you see, their numbers are often not based on reality. They are based on selling to inexperienced buyers.  Most realtors are not experts in investing and do not themselves invest. But I would think they all can easily run the comps so you know the numbers you are aiming for in any given neighborhood/block/property.  If you need some connections, I run the most active group of small landlords in the city and have a network of connections that you could potentially leverage. DM me if you need anything.

I don't know the Baltimore market but have a friend who is a very savvy investor there and maybe he would do some coaching to help you understand which way is up.

Take a bit of that money and invest in learning - go to meetups and the many events that take place related to investing in the city - some for free and some paid. Consider getting some genuine coaching to jump the learning curve. Drive around the neighborhoods to understand the lay of the land - if you have someone who will take you around and explain, better yet.  And working for a contractor that does flips or rentals would be ideal.

Hey @Evan Grant so as a savvy experienced investor you already know that the  investor course stuff is not going to advance you and you know everything they have to teach already.. . Not to mention that the way many try to package their systems as some one size fits all to turn everyone into millionaires. I run a large group of Philly landlords and have a nice network of reliable service providers, contractors and reliable solutions that landlords need. I cooperate with a fantastic local investor who does coaching on a small scale. No guru BS :-) reach out if you want to chat.

As folks are telling you it is hard to say since it all depends on what you need to do. Definitely no way to do a full gut rehab or close to that for $50k today. Things like a new roof can range - here in Philadelphia where i do a lot of work, our flat rubber rowhome roofs are fairly inexpensive and standard . . . But structural issues can kill you. You will also likely be paying more than more experienced investors as you build your team and knowledge. Learn as much as you an about how to scope a property and estimate the investment. $50k sounds like a lot to you but with the price of materials and of qualified labor, it does not go too far. Contractors are paying their experienced workers $250/day these days in our parts.  Good luck!