All Forum Posts by: Lisa Ryan

Hi,

I'm looking at a 3 unit near a college in central PA.

Units rent for 600, 650 & 700 ($1,950 per month total)

Owner pays for heat (approx $4,000/yr) and water (approx $1,800/yr)

Price: $115,000, Taxes $3,000, Insurance $1,200

If it weren't for having to pay the heat I think it sounds decent but with the extra 4k a year I'm not sure.

Thanks of your help!

I know that I need to speak to a lawyer, but I was wondering what some lease terms are that you're either grateful you have in your lease or wish that you had included. Also, what are the standard penalties for breaking a lease? Thanks!

my agent gave me that range. The place was rented for 1400 a year ago but then he dropped it to 1200 because the tenant couldn't afford 1400 anymore and he didn't want to find a new one.

The 1300 to 1500 range was provided to me by my realtor and I've also looked on zillow and Craigslistyself. The problem is that there aren't many 2 bedrooms in the area. There are a few 3 bedrooms that rent for about 2.2 to 2.5 depending on condition., but currently there are no 2 bedrooms on the block.

Yes, definitely on the inspection. I bought my house January 2013 so I'm still somewhat up to date with the process. And also I'm lucky to have my father who knows quite a bit about construction.

tom, I'm under contract on the house! Hopefully everything goes smoothly and no big issues come up at the inspection next Saturday. I'm really scared - this basically brings mum checking account down to about 2k and I have no one to rely on for help, but I'm a hussler so I think I'll be okay.

Thanks Ali!

I went under contract today for a tiny little Trinity near Italian Market for $134k that should rent in the 1300-1500 range. It's not spectacular but I think it's solid.

The house that I live in is a single family house that I bought just for me. When looking for houses I had no intentions of renting out rooms or having rental income come in, so if I had to do it over again I would have bought a duplex so I could retain my privacy. I travel for work Monday-Friday so it's not a huge deal though.

I'll probably be able to give you better advice in a few months after I've bought my 1st true rental property. Sorry I can't help!

I've been working on establishing what my goals are. The first time I spoke to my realtor she asked me if I'm more concerned about appreciation or cash flow. I told her I want it all. I want the property that's going to quadruple in value within 5 years and produce a $1,000 a month cash flow. Obviously I was kidding, but it was my way of covering that I didn't have a clearly thought out answer for her.

So here it is. I'm 23, single, with no kids and have a good job with a good salary and a well-defined promotion and raise schedule. That said, it's big 4 public accounting so the turnover (both voluntary and not-so-voluntary) are quite high, but I'm also confident that I'd be able to find another job somewhere between CC Philly and Princeton NJ quickly that would pay at least the same, if not more. With that said, I don't need cash flow now. Not that anyone ever companied about more cash, but I don't need money to put gas in the car or food on the table (set for 1). I've come to the conclusion that appreciation and a solid, reasonable cash flow is what I'm after.

Within Philly there are quite a few houses for sale for under 50k that produce very good cash flows, but the types of people attracted to those areas aren't who I want to be dealing with. It's great for some people, but I would rather spend more and be in a safer area and have a rental that appeals to a different clientele. Being a 23 year old 5`3 female, I do value my safety and don't want to put myself in danger.

Regarding timeframe, I bought my 1st house last January. This is the house that I live in and rent out 2 bedrooms for a combined $1,000 per month plus 2/3 of utilities. I'm submitting an offer on my 2nd house tomorrow and even if that falls through, hopefully within the next couple of months I'll have house #2. After that I plan on hanging low for a few years. The house that I'm living in could use about $10-15k of cosmetic upgrades (bathrooms being the main expense) so I plan on saving for that before saving for my next downpayment. The plan would be to buy house #3 right around 30 and call it a day. It's a very long term plan, but I'm already thinking about retirement. Have all 3 houses paid off by 55 and there's an extra $25k/year (in today's money) in passive income to supplement my 401k and IRA. It's definitely not a get-rich-quick scheme, but I think it's viable and will supplement my income & retirement.

Thanks Tom!

I'm making my 1st offer on a rental property tomorrow so fingers crossed!

The rents in Philly vary immensely street-to-street. All of the places I've looked at have been in about a half mile radius of each other and have been either 2 bed/1 bath or 3 bed/1 bath. In some areas they rent for about $750-800, others for $1200-1400. The closer you get to Graduate Hospital the higher rent and the higher likelihood of dramatic appreciation from the Graduation Hospital sprawl pushing south, but you'll also pay more.

I don't know much about the specific questions you asked, but just thought I'd offer my two cents. I'm looking at buying an investment property in Philly too and have been out with the realtor a couple of times. I'm not sure if you have a particular neighborhood in mind, but I'd look at Point Breeze/Newbold. It's close enough to center city that it's attractive and growing, but the housing prices haven't exploded yet like they have in Graduate Hospital. Hopefully they will in a few years after I have my place :)