I didnt even think about the single family license. Good thoughts !


In regards to '30 year timeframe', I dont nessacarily see myself coming back to Philadelphia to 'live', but would be happy to just return for holidays, for the occasional summer etc. I figured by then, if I had paid up for the house, it'll be nice to own in my 'old age'. Yes, I do think ahead..

Listening to all the advice it does seem difficult that might plan might work out for the best- I'm taking a look at a few more places closes to $240k in price which might be easier to rent out (i.e closer to center city/ university city) but doubt I'll end up getting something -which is not a bad thing at all especially if research was done !

I do appreciate all the advice, and I'm listening...Keep it coming..

You'd be astonished at how high closing costs are - $10,000 for closing costs seems pretty low to me, I'd estimate higher - around $15,000 at least.

(Don't forget, Philadelphia takes a 2% transfer tax from the buyer and seller in any residential real estate transaction, so there's $5600 in closing costs right there for you.)

Respectfully, even at a $240M purchase price, the CAP rate is too high and makes it a bad investment. Have you factored in all the taxes---don't forget to include gross receipts and net profits---into your equation?

PS: I'd love to know where you find tenants @ $2000/month for that property!

Re the long-term plan, if you're going to be somewhat old in 30 years, and you're intent on owning something, a one-floor unit in a nice condo building might be a good investment. No stairs to handle when you're a senior. The building management could handle repairs for your renters for the next 30 years. If you're not interested in the investment part and just want a place to stay when you visit a few times a year, 30 years from now, you could probably do a lot of other things with the money in the meantime, then pay for a very nice, fancy hotel suite for your visits.

couple of interesting things to note,


1) I agree - looking at how old I might be in 30 years, and with rates/closing costs/ etc etc (even assuming that I get 2k in rent each month) the property does not seem like a good investment, in the short-term/long-term. Which is a good thing because its always nice to hear feedback from people like yourself who know a Lot more about these things than me..

2) In regards to 2k rent a month - interestingly enough, 3 bedrooms which are less done up, are going like hotcakes at $1200-$1400 range in the area (perhaps even less desirable blocks, for renters at least).I tried giving some landlords a call who had places in that price range in that area, and they had all been rented out within days of posting. Single property zoning/renting would be impossible at 2k, but I'm guessing if you looked hard enough (i.e were in the country and were not depending on a property management firm) you would be able to find students willing to pay 2k for a 4 bedroom with two full baths, that close to the 'thick' of things. (which I should not is illegeal I'm guessing, so one should Not be doing it) But I could be wrong.
I'm starting to look at putting the money somewhere safe, and if I did buy, perhaps buy something in the below 100k range where I'd live in for a year, put some equity into, and rent it out for cheap when I leave. Yes, I'd still like to own something solid, if that makes any sense ! Perhaps its so that I dont get tempted to spend on anything else

Keep the feedback flowing !
Thanks for the thoughts people..