Housing shortages have more to do with boomers living longer and holding on to their large homes and provincial red tape.

A common strategy used by investors, such as those operating through PadSplit, involves purchasing the property, completing basic rehab, refinancing, and then using cash for the interior build-out.Another potential red flag, even without converting common areas, is the addition of individual locks on bedroom doors.

The property is a duplex with an ARV (after repair value) of $700,000, making it a strong deal.However, I want to ensure I’m not overlooking any potential red flags.

One market shift and you're in the RED. 

Interesting - I have been investing in Philly for 8 years, run a  group of 2500 small landlords, speak at lots of events, know and network with many of the players  . . . but never heard of him before.

Every interaction with them has raised red flags. 

It would not be a terribly profitable industry, and a few large players (hopefully including my NewCo) would dominate the space.

Connect with a few players who know your submarkets like the back of their hand, and suddenly you’re not the lone wolf trying to move product.

There’s always demand for rental properties, and with the landlord-friendly laws, you don’t have to deal with all the red tape you might find in other markets.

**Ethical Concerns:** At the time I joined, certain marketing tactics raised red flags for me.