First Investment Property in Pottstown, PA

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First Investment Property in Pottstown, PA

Craig Eppler
Rental Property Investor · Philadelphia, PA · Member since 2018 · 14 posts · 6 votes

Investment Info:

Single-family residence buy & hold investment in Pottstown.

Purchase price: $54,082

First investment property in Pottstown, PA. Set to CF $208/month after vacancy, cap ex, maintenance, and an umbrella policy. No money down using a HELOC from my primary.

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

Wanted to start small, minimal repairs needed, tenant in place to CF right away.

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

Found on MLS, was able to negotiate a few thousand with my agents help and a few thousand more after inspection.

How did you finance this deal?

HELOC and 10/1 ARM.

How did you add value to the deal?

Minimal repairs throughout the home and sealing windows.

What was the outcome?

Buy and hold, more to come!

3Reply
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Most Popular Reply

Colin Gallagher
Chester County, PA · Member since 2019 · 10 posts · 2 votes
7y

Congrats, Craig! 

My first attempt was about a month ago. A property in West Chester that we got under contract. After inspection we found termite damage and had to back out so still searching for my first deal. It's neat to hear you both having success in Pottstown. I've been thinking of checking out that area. 

@Clark Kirkpatrick was curious about property management in our area, glad you mentioned Slatehouse I'll look into them as I get a few deals under my belt. 

Cheers gents!

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  • Clark Kirkpatrick
    Contractor · Pottstown, PA · Member since 2018 · 216 posts · 160 votes
    7y

    Congrats Craig! 

    Pottstown is a great market in this area. I grew up in the Downingtown area and I'm house hacking in Pottstown now, with a couple more places under contract. 

    Are you hiring management out or doing it yourself?

    1Reply
  • Craig Eppler
    OP
    Rental Property Investor · Philadelphia, PA · Member since 2018 · 14 posts · 6 votes
    7y

    @Clark Kirkpatrick

    Thanks! I'm hiring management out with SlateHouse. 

    How many units do you have in Pottstown?

    0Reply
  • Clark Kirkpatrick
    Contractor · Pottstown, PA · Member since 2018 · 216 posts · 160 votes
    7y

    I have one rental that I'm managing myself (the other side of the duplex I live in) and I'm closing on a second duplex in a couple weeks that's fully rented. I also have a SFR under contract that needs a rehab, but it's a short sale, so we don't have a closing date yet because the bank likes to take their time.

    I'm having Slatehouse manage the next place I'm closing on as well! So hopefully that'll go well. I've had really good experiences with the people there and people they've referred me to for insurance, legal, realtor and title services.

    1Reply
  • Craig Eppler
    OP
    Rental Property Investor · Philadelphia, PA · Member since 2018 · 14 posts · 6 votes
    7y

    @Clark Kirkpatrick

    Nice work! And yes, I've had the same great experience so far, hoping that continues on the property management side.

    Best of luck moving forward.

    0Reply
  • Colin Gallagher
    Chester County, PA · Member since 2019 · 10 posts · 2 votes
    7y

    Congrats, Craig! 

    My first attempt was about a month ago. A property in West Chester that we got under contract. After inspection we found termite damage and had to back out so still searching for my first deal. It's neat to hear you both having success in Pottstown. I've been thinking of checking out that area. 

    @Clark Kirkpatrick was curious about property management in our area, glad you mentioned Slatehouse I'll look into them as I get a few deals under my belt. 

    Cheers gents!

    2Reply
  • Syed H.
    Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
    7y

    what do you hold back for vacancy, cap ex, maintenance,? How many sf is it? 

    0Reply
  • Craig Eppler
    OP
    Rental Property Investor · Philadelphia, PA · Member since 2018 · 14 posts · 6 votes
    7y

    @Syed H.

    860 Sq ft
    5% Vacancy
    5% Cap Ex
    5% Maintenance

    0Reply
  • Craig Eppler
    OP
    Rental Property Investor · Philadelphia, PA · Member since 2018 · 14 posts · 6 votes
    6y

    @Clark Kirkpatrick

    How are your properties doing in Pottstown?

    Update: As soon as I closed I had to evict the tenant and sink some more money into a new paint job, cleaning, ect. I have had the property listed for almost a month now. Any tips? I'm starting to get frustrated. Thanks!

    0Reply
  • Clark Kirkpatrick
    Contractor · Pottstown, PA · Member since 2018 · 216 posts · 160 votes
    6y

    @Craig Eppler They’re coming along well overall, definitely with some frustrations here and there though. Send me a message if you want to discuss further, I’d be happy to assist if I can. 

    0Reply
  • Heidi Kloeer
    Member since 2018 · 3 posts · 4 votes
    6y

    Craig, Pottstown is frustrating. My suggestion is to ask for help. Not from a new investor who mostly frequent this website. Ask the Pottstown code inspectors for the number of someone who will give you honest feedback and help. I heard there are no nonsense investors who will give it to you straight but be prepared to learn and not like some of their feedback. I talked to a new investor who sold his properties after a year because he realized the mistake he made after talking to this long term investor. I don't feel comfortable giving out names but the code inspectors should help. Cheers. HK

    0Reply
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