Let’s Find a House
We are happy to report that we have our temporary financing in order and are ready for the next step. We are currently looking at a number of potential properties, but do not have a house under contract yet.
The property selection process is one of the most important steps in the process. Purchasing a house for the wrong price can end up costing thousands of dollars, so it’s important to get right. And making an offer too low can lose a potentially great deal.
What to Look For
When we look for new properties, we look at many factors. But there are a couple that stand out.
Purchase Price: The purchase price is one of the most important factors, but the list price is not always the final answer. We often bid under asking price, though some properties may sell for even more than the list price.
Work Needed: We always look for houses that need significant about of work done. This is an important part of our model, and ultimately allows us to buy houses much cheaper than they are worth. The more the house needs work, the lower the price we can get.
Cost of Rehab: We always make an estimate of how much the rehab of a house will cost. We are able to make our estimates using experience and our highly qualified team of contractors who will often walk-through a house before we even make an offer. This process helps us make accurate projections.
Market Rents: All of our refugee families pay normal rent rates for our impact homes. It is important to remember that refugee families aren’t in need of discounted housing, but rather of fair and accessible housing. Rent is determined by the current rates of nearby similar properties and is an important factor in our financial analysis.
We are currently looking in the NE Philadelphia neighborhoods of Tacony, Mayfair, and Oxford Circle. These neighborhoods are home to many successfully integrated Eastern European refugee families as well as Syrian and Afghan communities.
We are continuing to search for the right property. When we find a good fit, we make an offer immediately. It is not uncommon to have to make several offers before we get a property under contract. Of course, we’ll let you know when we lock one in!