Re: Real Estate Investment Clubs in Philly?? - Posted by PaulC
Posted by PaulC on February 10, 2002 at 13:39:00:
I am from the Philly area and would like to share this with you. Most of your better multi-family properties are in the Far Northeast section of the city. Areas like Somerton and Parkwood, Holy Family college area etc. Stay away from the area around George Washington High School though. Duplexes in these areas run anywhere from 75,000 to 150,000 dollars. Stay away from the high end ones too, they will only erode your profits. The market for rental fees in these areas will only bear $550 to $850 per unit. Ideally you want your multifamily properties to pay for themselves at the least. Also, consider living in a duplex and renting the other apartment. You can take advantage of “owner occupied” financing from a qualified lender. It may save you money by having a lower interest rate and low down payment.
Be carefull of creative financing. Find a lender who will work with you, and that you can build a relationship with for future deals. Easier said than done though. They are out there if you look. Look for properties with established tennants that have a good rental history. Thats key in buying something with tennants who will be carried over. Never assume you will be able to rent vacant units. Look at demographics. Is there a market for renters. Holy Family college area is a case in point. Students looking for off-campus housing will keep that areas rental market alive for as long as the college is there. The downside is your renting to young adults who can be irresponsible at times. ie; repair costs for the keg party that got out of control.
Good luck and happy hunting