All Forum Posts by: Ethan Giller

@Gloria Dulan-Wilson, thanks for your interest, but this one is already under contract.  Please send me an email though as I have other multi-families in Philadelphia (West Philly) that could be available.

Price reduction to $138,000!  This is a true turn-key triplex with realistic monthly rent roll of $1,900.

Keywords: Philadelphia, Philly, deal, rental

Unfortunately, I think it would depend on the exact permit pulled, how much work is being done, and likely the whims of the specific inspector.  Usually we get permits to do a full gut rehab or we get EZ permits for specific work so I haven't run into this myself, sorry!  I think your best bet is to confirm with that inspector exactly what he expects, as sometimes the requirements seem somewhat subjective and flexible...

1223 S 52nd St

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Hey BP!  This property is offered exclusively to the BP community for a few days before I put it on the open market.  Hoping to find a serious buyer who recognizes this as a good deal, and to avoid some of the tire-kickers.

This turn-key triplex is for sale in SW Philly, on a main avenue and a good block. This is a full rehab that I own (not an assignment deal, REO, short sale, etc.) and I was actually planning to keep it myself, but I already own a lot of these and I would rather cash out in order to fund other projects.

I am just putting on the finishing touches now (painting the front porch, etc.).  Only thing it needs is appliances (will let the buyer provide their own).  Come and take a look yourself, the list of work is extensive.

Separated utilities (gas & electric).  Super low taxes at only $405 per year!  These types of investor-friendly rehabs don't come on the market very often, and this one is priced to sell.

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Property will realistically rent for $2,000/month:

1BR 1st fl/basement: $550

2BR 1st fl/2nd fl: $650

3/4BR 2nd fl/3rd fl: $800

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Pics: https://www.dropbox.com/sh/cpt3ofcefauf8n6/AAAi7k-...

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Rehab list:

-Remove mold areas in drywall & repair damaged areas, spackle & paint entire property

-Replace damaged entry doors & interior doors & door hardware

-Replace non-working windows, put screens in all windows

-Capping of all windows

-Install vinyl flooring in kitchens and bathrooms & basement

-Install carpet in all bedrooms & commercial carpet in common hallways

-New roof

-Cut down all trees in yard

-Clean out backyard and concrete where needed

-Concrete front entire sidewalk and broken step

-Granite with sinks and faucets, and repair/replace cabinets in kitchens

-Fix electrical issues where needed

-Replace light fixtures & install new outlets and switches

-Repair damaged plumbing & replace water lines that were cut out for copper

-Repair/replace toilets & tubs & vanities & faucets & mirrors, as needed

-Paint cornice in front of house

-Install missing trim throughout

-Porch repairs, including soffit, and painting

-Smoke & CO alarms throughout

-Repairs to heating systems & hot water heaters, as needed

-Above range microwaves in all units

You can make money renting in any area, so long as you buy right.  In higher-end neighborhoods, should expect better quality tenants, lower cash flow, but potentially more appreciation.  In lower-end neighborhoods, the reverse is true.  So your question of where to target really depends on your investment goals, your time horizon, your capital availability and financing options, etc.

In my personal opinion, I would advise you to stay away from student rentals in Philly.  Right near Penn is very expensive, and many other schools (e.g. Drexel, Temple, USP) are building more student housing to discourage students living off campus.

A $250K property (that needs upgrades) which rents for $1.5K max will never work out, no matter what seller financing terms you get.  If you can get the price down to $150K per property with seller financing, then you have the makings of a deal.  Otherwise, don't bang your head against a wall trying to work the numbers to make it happen, spend your efforts elsewhere.

HUGE PRICE REDUCTION... PRICE ONLY $36,500!

Keywords: Philadelphia, Philly, triplex, multifamily

What is your total investment budget? Are you using all cash or do you have lenders lined up? 

http://www.zillow.com/homedetails/1802-N-22nd-St-P...

Needs work but is NOT a shell! Just put on a NEW RUBBER ROOF (including replacing all rotted rafters), with a 15-year warranty.  Property is vacant and cleaned out.  Intact systems (hot water heater, boiler).  Price is below comparable properties for this area and condition.

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$44.5K acquisition price

+$2.5K closing costs

+$60K renovation costs

=$107K investment (Estimated ARV = $135K)

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$23,400 annual rent (1,950 monthly rent @ $650/unit)

-$1,500 insurance

-$670 taxes

-$1,200 cold water provided by landlord

-$1,170 vacancy & property mgmt (@10% of rent)

-$2,340 repairs & CapEx (@10% of rent)

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=$16,520 annual return

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$16,520 / $107,000 = 15.4% cap rate

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Keywords: Philadelphia, Philly, triplex, multifamily

If you are buying an investment property, the usual thought is you should buy in an LLC. Unfortunately, this means that you generally can't qualify for residential mortgages (i.e., fixed rates for 30 years). Fortunately, it means that you can qualify for small business loans secured by real estate (i.e., a commercial mortgage). To be fair you can get a commercial mortgage even if it's not in an LLC, but it's a bit easier in my experience if you have a business structure setup.

Best strategy: buy for cash, renovate for cash, get it rented, and then refinance and pull all or most of your cash back out.  Since you are applying for a commercial mortgage, it's usually not a problem to have the rental income included as income.

With $200K you can definitely get a multi-family in Philadelphia.

If you have any specific questions about Philly investing, feel free to send me a message or email.