Philadelphia Real Estate Investment Enhanced by Infrastructure Funds

211 million - that's the number that will go to urban areas of over 200,000 population in Pennsylvania from the $27 billion Federal stimulus funds. $ 30 million is for mandatory "transportation enhancements", which include projects such as sidewalk repairs, bicycle paths and beautification projects, according to a Philadelphia Business Journal article.

As the article states, these projects "don't involve vehicle or mass transit related items". As we seek investment properties, we have seen the resurfacing of streets and repaving of sidewalks already. These projects have been attractive to property investors looking in Philadelphia for the past several years and add to a neigborhood's value.

Areas in Philadelphia such as the Market Street El corridor have already been worked on. Arch Street and a good number of the smaller streets running north and south have have been repaved (Arch with even a bike path) with new sidewalks. After many years, the Market St. el project is in it's final stages.

Cash flow investment properties are available on the north side and south side of Market St. At the present time, we have an investment property in the 57th & Market Sts. area. It can be acquired under $ 30,000 and about $ 25,000 in rehab work. After improvements, equity will be about $ 20,000, with positive cash flow every month after refinance.

On the south side of Market St., we have a property available on the 200 block of S. 57th St. The ARV will be $ 120,000 after rehab - it can be purchased for $ 42,000 and needing $ 38,500 in improvements. This property will also translate into positive cash flow and equity of $ 30,000. We also have one available in the 60th & Chestnut Sts. area.

There are many that would say that this stimulus package will not create jobs or really help the economy. I'm not here to argue that. What I am saying is that the stimulus money is coming - like it or not. Position yourself to take advantage of it and help your personal economy and financial future.

Refinance Your Investment Property - How Does 4.87%, 30 Year, 1 Point Sound?

If you’re a real estate investor, it’s been a tough go in the last few months when it comes time to refinance your investment property. But things have changed in the last 2 months that can increase an investor’s cash flow rental property.

The investors that we have wholesaled our investment properties in Philadelphia, as well as our own properties, have seen the rates come down to nice levels. The cash flow potential as increased with these lower rates and terms. On top of that, effective March 1, 2009, Fannie Mae has lifted the 4 property financed property limit to 10. Although the qualifications are still a bit tough, as Skip Lucas comments from Creative Mortgage Broker.

One of our financial sources, MAC Investments, has a refinance program of 4.87 %, 30 year with 1 point. MAC Investments has both hard money and refinance programs. Of course it depends on your own situation, credit score, income, etc.
To have seen rates like these just 2 months were unheard of. When we refinanced two of our properties in late December, our rate was 6.7% for 25 years. That was great! Back then. How things change in two or three months.

In all, for those that are active real estate investors, these terms will be able to add to your monthly cash flow - your bottom line. The best thing to do is contact SEVERAL finance sources and see what they have. Check out our website for some sources to start with. Click on the “Refinance” and “Hard Money” buttons on the left.

One of the things we’ve seen over the years is that an investor will call ONE bank and get a lousy rate quote or strict qualification limits and then say that they can’t refinance. It’s like shopping for a TV - you go to several banks (preferably small ones), call several financial sources, and see what’s available. AND DO THIS WHILE YOU’RE LOOKING for an investment property, not when the rehab is done.