All Forum Posts by: Sheryl Sitman

@Nadia Bipialaka    Every question is a good question - none of us was born knowing this stuff!  I have been investing in Philly since 2016 and actually run the largest group of Philadelphia area Landlords on FB (DM me for more info if you are interested).  All in at $150k in this market may work but as others suggested, you really need a clear understanding of what you are doing and how to do it. Like any big city, there are lots of neighborhoods, and neighborhoods go block by block -- for example, I have one prop in my portfolio in a particularly rough area but MY block is great because there are several homeowners living there who truly care about their home and block and I have made friends with all of them and am able to keep good tenants in the home. One block over it is literally a different world. Hard to imagine but that is reality. Meanwhile, on my block someone is nearing completion of 2 new construction 3 story + rooftop deck homes and the change we expected to eventually happen when we purchased in 2018 is now starting - and great for us.  My point is that you really want to buy smart.   I do a podcast as well and put a lot of info out about working in this region. Feel free to reach out :-)

@Stephen Gibson Jr  Welcome to the crazy world of Philly investing! I want to suggest that you put some order to your thinking. You are making a mix of what you want as a homeowner and what you are trying to achieve as an investor. And not sure where the $2k per unit for a $600k investment comes from so I would suggest to learn about how to underwrite opportunities. I run the Philadelphia Landlords Connect group on FB and have invested in Philly and elsewhere for the last 14 years -- it can be very confusing. Learn the basics, make sure you understand what you are getting into, get to know Philly neighborhoods, laws, L-T culture... Consider getting some guidance. And no - RE estate agents are not allowed to consult you on investments but at the least work with an investment savvy agent.

@Danielle Hu welcome to the crazy world of RE investing. I also started while living abroad way back in 2009. Actually bought several properties before finally moving back to the US 7 years ago to focus on real estate. I actually had to Fax signed docs back then in the middle of the night.  While I have had a very good experience, I do suggest that you proceed with caution. I was fortunate to start before there was so much hype and everyone was making it sound easy or pushing some magical method. It would be tough to manage buying a distressed property, for example, unless you have a team on the ground that you know you can trust. If you buy in areas with older housing stock, tough tenant population and try to manage on your own without any experience, it is not going to go well. Think hard on what you want to do, what you envision and how each market that interests you can match that.  I manager the Philadelphia Landlords Connect FB group and see first hand what happens when people jump in without knowing laws, without a good team . .. Consider getting some guidance. Good luck! 

Our strategy is not based on what everyone else is doing. It is based on the resources we have, our personal life situation (which evolves with time) and the opportunities that exist. In 2020, we purchased a property in Lower Bucks County Pennsylvania in what we identified as a solid, growth area with good potential for appreciation and ROI. It was located in a seventy year old group of neighborhoods that we believed to be at the cusp of change and within a 40 min drive from our home.

Purchase price: $157k

Property Condition: The owner who lived in the property knew just enough to do a lot of shoddy work on the house himself and we figured there would be some surprises during our rehab, Three years later there is still the occasional surprise, like the upper kitchen cabinet that came crashing off the wall because it was not connected to a stud. It was also the first investment where we discovered termites and termite damage while renovating. Then there was the city inspector who told us that the electric panel needed to be brought up to code and after concluding that the roof was likely to be a potential cause of problems, we decided to replace it and avoid future issues.  Let's say that it was not the typical property other investors were rushing to buy at the time so competition was light.

Total investment: $190k

Results: By this summer, we can conclude this was a standout winner.

Rent: The property has been fully occupied since the rehab was complete and current rent is $2,100.

Appreciation: On the same block, a few houses away an exact comp was sold for $339k. This all happened within in three years.

This is the stuff you do not learn in courses for the masses. 

@John Phillips   Welcome to the exciting and confusing world of investing. I live in New Hope and invest in Bucks County, Philly and Lehigh Valley as well as other states.  I've been doing it full time for 7years after a career abroad in tech sales and marketing. I thankfully got to the suburbs in time. The areas you are describing are truly wonderful and increasingly  desirable RE markets. Unfortunately, you are late to the game for cashflow in those markets. Don't let that get you down - we all experience that. You could get lucky and find something that works if you have some unique connections or sources or you could . With the the hype around RE, everyone is in the game competing for the same stuff we all want. But there are endless markets out there for getting solid opportunities - depends on what you are trying to achieve, your resources and risk tolerance . . . If you are interested in some focused consulting to get you out of analysis paralysis and onto defining a strategy and identifying opportunities that fit that, feel free to reach out.  I also run a group of almost 2000 local landlords sharing info and advice and help get people connected to vetted contractors and service providers. Whatever you do - good luck!

@Lisa Talbot  In general, the class of property you are seeking is very competitive. I am curious how you decided that you want to do a small multi as opposed to a couple SFHs. Keep in mind that when you want to sell, your only audience will be other investors and tenants in small multi-family, unless in A and B areas, can be tough. Hard to give any real advice without knowing more. I manage a group of almost 2,000 landlords in Philadelphia and invest in Philly, Lehigh Valley (PA), and FOUR additional states. We believe in strategic diversification and it works when done right. When people tell you focus on one area, I get why they are saying it. But I can tell you that most people I know who have done that, have lost sleep -- no place is 100% resilient. Some markets you mention, I would caution about - you really need to know what you are doing. Same with Philly, but I know what I am doing so doing good there -- still, there are challenges everywhere but some markets have fewer challenges. Last piece of advice is take the spreadsheet numbers with a grain of salt. The markets you are targeting have the potential to be old housing stock with lots of surprise problems and tenant issues.  If you decide on Philly, happy to help you out.

Hey Rick. I have been working with a highly professional STR host on one of my properties -- keeps the house in great shape and guaranteed rent for the long term. Not sure it fits what you are trying to do. If you are just looking for good tenant to take a 1 year lease, It's going to be faster to just list it at the price you are seeking. With fewer homes available in the Philly suburbs now, it should command a good price and attract your choice of tenants.

I will DM you a questionnaire to fill in

@Joseph Pugliese  We do this for investors. My husband I are invested in Easton and Bethlehem for the last 6 years and we have helped a dozen investors do a few tens of properties in the area. Good solid trustworthy team that can provide you a full solution.  Feel free to reach out.

@Bradley​ Lobo  Is this your primary, a rental, a flip? I would believe any price you told me since there is no limit to how much you can invest in a property  - it depends first of all, on what you are trying to achieve. If this is a high end flip in which you are trying to get top dollar in a top neighborhood, so you need high end finish and a great contractor. If this is a rental, it's a totally different approach and budget.  My guess from what you wrote is that you are talking to retail contractors who work more with homeowners than with investors.  You can find contractors to "redo" a shower for a very small fraction of that quote but it depends on what you are doing and the level of work/finish. There are contractors with crews who earn $15/hr and contractors with crews who earn $30/hr and more. There are shower doors at Home Depot and there are shower doors at high end suppliers - totally different products. I Reach out of you need a reasonable contractor that understands investors :-)