Analyze Bustleton NE Philadelphi PA Rental Property

7 Replies

Any Comments on the below Deal

3 Bed 2.5 Bath with In-Law Suite in Basement ( Builtup Area 1600SQFT ) Lot size 3000sqft

Location : Busselton , NE Philadelphia, PA

Buying Price: 29,5000

And i will be doing a FHA with 3.5%Down and the Mortgage will be around $1750/Month

Like to House Hack the Basement In-Law Suite(Gets additional $400/month ) and Rent out the 3ed 2bath up stairs to Family ($900/month).

Is this Good deal and is this Location Busselton NE Philly good area to invest ?

House does not not need any repair except the Inerior paining and Floor finsshing on hardwood floor.

On top of the Rents ($900+$400) i am considering that i will save $600 off my current rent total comes around $1900/month ..

Also do you know any thing abou this neighborhood (Bustleton NE Philadelphi PA).

@Jay Su

The bustleton area is a good blue collar area. Take your time and do a thorough background check on your tenants before accepting them. A lot of them live paycheck to paycheck but have good steady jobs. If you can find a small family to rent the space for a single parent that I think would be ideal. This is just my suggestion.

My concern is that you are counting on this property having two units, but are both units legal?

And I assume you have a typo on the buy price, and that it is actually $295,000.

Both Luis and Steve , 

Thank you very much for your inputs .

Sorry yes there was typo correct price is $295K ,

I am also not sure the legality of renting basement is city specific or any website that we can check ..

The area is good and relatively stable from a rental income perspective but also small appreciation outside of big market swings which affect the entire city. But looking at your numbers I dont see how that can possibly be a good deal.

1) anywhere near 300k in the NE area sounds incredibly over priced.
2) You describe a total return of $1900 with your rent savings on a 300k house. That is terrible.
3) If you were to rent this out completely you are prob looking at 2200-2300 total in rent. Still pretty bad.

Some areas in Philly simply do not make great rentals because the average cost of the property is too high for the rent potential. Majority of the NE Philly is like this so for starting out I would look for an area with a bit better rent to purchase price ratios.

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