All Forum Posts by: Sheryl Sitman

True

@Saeed J. 
Since 2008, Philadelphia's housing market has shown steady, moderate growth, avoiding the extreme price swings seen in more volatile markets like San Francisco, Las Vegas, and Miami. Home prices in Philadelphia have appreciated at a consistent rate of 3-6% annually, providing a predictable environment for investors. The city's diverse economy and relatively affordable home prices contribute to its market stability. In contrast, volatile markets experience significant price fluctuations due to economic sensitivity and high levels of speculation, leading to potential affordability issues and market corrections. Philadelphia offers lower risk and more predictable returns, making it a stable choice for long-term real estate investment. Additionally, there is current optimism with the new mayor, who is focusing on economic development and infrastructure improvements and literally cleaning the city block by block, further enhancing the city's investment appeal.

The absolute best city or town to invest in ( do not get stuck on the notion of investing in major metros or you will miss out on many interesting opportunities) is . . . the one where you have a team you can trust, where you are able to learn the market and its nuances and get to a point where you are comfortable doing business there because you know how things work and what the market requires for success. Focusing on the "landlord friendly" state concept is wrong - clearly many successful investors continue to invest in what can be labeled as non landlord friendly states.  There are challenges everywhere for different reasons -- weather, building codes, tenant culture, competitive market, high cost of labor.  Look at your investment decisions holistically.  It's as easy to fail or to run into problems in the "friendly" states as it is in the "unfriendly" states. And possible to succeed EVERYWHERE. I do not know the markets you mention, but wonder how numbers could work today in a very mature market like Nashville with a current seemingly high vacancy rate due to lots of development in recent years. Good luck!

@Adam Bartomeo curious as to what you see happening in Cape Coral in the long run.

@Hans Baum What @Kevin M. has suggested is on spot. In Philly, you can find out just about anything about a property / zoning / permits online. I will caution that what you can not know is whether that builder actually did a good job and how he did the work (his own crew or subs for example). I run a large group of independent landlords and we share lots of stories and info exchanges about working with contractors. As you may imagine, there are good and bad and you can not tell by the pictures you see. In addition to the workmanship, you want to work with someone who is good at managing time, people and his relationship with you, his client :-)    We are actually building out a network of approved contractors because one of the biggest pain points investors and landlords face in Philly is finding reliable solutions.  Good luck!!

I run a group called Philadelphia Landlords Connect and know a few good agents that primarily work with investors. DM if interested.

@Damion Brown You can definitely do a nice project in this budget and achieve $1600-$1900 rent. "Best" means different things to different people and Philly is filled with MANY neighborhoods to choose from. Your key is going to be working with the right team. I am not an agent but I do run a very large group of independent landlords so feel free to reach out to get connected to good sources. You may as well work with an agent than trying to figure it out on your own

Definitely keep the garage. But like others are telling you what you should do depends on the neighborhood market. Focus on the numbers! How much more will you get for the unit with the garage upgrade vs leaving it as is.  Even if you think it is worth another $xxx -- if no one rents units in that neighborhood for that additional price, it is going to take you much longer to fill your vacancy so it could mean another 3 months empty with no income. Remember - your market has a limited budget.  You can also possibly rent it as is separately for another $150-$200/month especially if your comps do not offer garages.

Hey there @Fendy Jn pierre  you should definitely talk to the agent I connected you to to help you refine your search according to your criteria :-)  But also I would ask what you are trying to achieve when you say you want to focus on "safe" neighborhoods. Investors would classify neighborhoods as A B C D with A usually being VERY safe and B being acceptably safe and C with variety of levels of crime and D would  be "don't come unless you are armed".  But your numbers are not going to work in A and unlikely to work in B. So work with someone who can guide you through the maze of neighborhoods, numbers, types of properties, trends . . . :-)

@Mark C. I have been investing in Philly since 2016 and quite happy with my PM but why are you looking to talk with PMs before you have purchased properties?  My guy handles Baltimore as well but a PM who performs well in one market is not necessarily going to be the best choice for every market. I worked with companies that try to provide management solutions across the country and I can tell you that no one has figured out how to do that well because each market is so unique.  It is a pain to have multiple PMs with different software and company personalities  but it is crucial to have someone who is really good for a particular local market - or you can get really beat up on your investment.