Second Investment Deal

4 Replies

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Phila.

Purchase price: $180,000

Duplex purchased with partners (fellow school teachers).
This place was turnkey - all major capex had been addressed by previous owners. Cosmetics had some room for improvement/rent increase.

What made you interested in investing in this type of deal?

Wanted another deal after the first had gone well.

How did you find this deal and how did you negotiate it?

MLS. There wasn't too much negotiation here. The property was in good condition.

How did you finance this deal?

Conventional, non owner occupied 25% down.
Brought in partners to help cover the down payment. They are silent partners. Twin brothers each with 25%, I brought the other half.

How did you add value to the deal?

I found it and manage it.
Some slight improvements over the years but not much:
-painted cabinets
-refinished wood floors
-retiled tub/shower walls
-new water heater

What was the outcome?

Rents have increased slowly but steadily.
The neighborhood has appreciated substantially. If I had to estimate the current value it is probably between 300-330k.
Partners and I sometimes discuss selling to capture equity, but they are not pushing for it and neither am I. So we let it ride.

Originally posted by @Jonathan Oh :

@Max T.

80%+ appreciation with very minor repairs? I think one key info you left out is neighborhood and when you purchased this.

 Fishtown Philadelphia 19125

In 2011. 

The whole neighborhood has come up. 

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