Primary Residence turned into Long Term Rental - Phila

[Alan Asriants]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $376,500
Cash invested: $41,000

I purchased this property as a Primary Residence using a 5% down Conventional Mortgage. While I was living there I replaced: the Flooring on the Second Floor, the Master Bathroom, redid closet into French doors, new paint, all new light fixtures, repaired rotted sheathing below deck, new hardware, etc.

I lived here for over 1 year and have moved into my next investment property househack.

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

I was looking for a primary residence that was going to cash flow after I moved out. I liked that it was built in 1996, had a new roof, new HVAC, beautiful deck, driveway with pavers, garage and other attractive amenities that would make it a great rental

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

I found it on the MLS. I represented myself as the agent and dealt directly with the sellers agent. I offered slightly over asking price without any contingencies

How did you finance this deal?

I used a conventional 5% down Primary residence mortgage

How did you add value to the deal?

I redid the master bathroom, replaced new flooring on second floor, new hardware, new lighting, new paint job, new closet doors, cleaned up deck, cleaned up driveway, etc

What was the outcome?

Lived here for over a year and rented it out as a Long Term Rental. It bring about $425/m gross cash flow

Lessons learned? Challenges?

Learned how important flashing is. The deck boards were replaced at one point but the contractor didnt install a $10 piece of metal flashing under the balcony door. This caused rainwater to flow into the home over time rotting away the sheathing.

A $10 piece of metal costed me $2400. I now look for this flashing on all decks

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I represented myself as an agent

AMRES - Dmitry Shamis - Lender
Alpert Abstract LLC - Title