Fishtown Single Family
Investment Info:
Single-family residence buy & hold investment in Philadelphia.
Purchase price: $325,000
Cash invested: $16,250
This is my first property and is a 2 Bed, 1.5 Bath SF row home in the up-and-coming Fishtown area of Philadelphia, PA. I bought this property to live in and currently reside here.
What made you interested in investing in this type of deal?
My plan was to keep it as a buy-and-hold rental and move out to the suburbs someday well before I ever learned anything about BP or REI. The numbers might not have been the best looking back as I didn't know what buy-and-hold or cash flow really were, but the appreciation and increasing rents will be forgiving when I do move. When I move I plan on house hacking a multi-family to build the portfolio!
How did you find this deal and how did you negotiate it?
I was working with my realtor at the time trying to find something and he was the realtor for the people trying to sell this. The wife was pregnant and wanted out. It was technically off market.
How did you finance this deal?
Conventional 30 year loan
5% DP
4.75% Interest
~$16,000 Closing
Refinanced 1 year in to give me some separation for CapEx between rental income and PITI. Saved $200/month from appreciation in property and equity.
Refiance:
Conventional 30 year
3.75% Interest
How did you add value to the deal?
Property was flipped 8 years ago and is in really good shape, so not too much:
- New vanity in the 1/2 bathroom
- new washer/dryer
- new recessed lights
- fixed the waste pipe
- new electrical box
- paint master bedroom
Plans:
- shiplap accent wall
- might need a new stove; starting to go
- new cement floor in basement
- Bedrooms' carpets
What was the outcome?
I guess TBD when I flip it to a rental
Lessons learned? Challenges?
If you want to buy a house to live in, understand that you're either paying for someone else to profit on fixing it up or you fix it up yourself and add value.
Basic first time home buyer mistakes like analysis paralysis, learning some handywork, etc.
I've learned from everyone who comes out how to do whatever it is I need for future projects (i.e. recessed light installation)