Excited about my new project

[Max T.]

Here are the nuts and bolts of it..... Scheduled to close in <2 weeks.

Duplex in the Germantown neighborhood on Philadelphia.

Purchase price 160k

Just appraised for 215k.

Needs about 40-45k in rehab work total. Mostly cosmetics and exterior work.

My estimated ARV is 250-260. I think that is conservative but comps are hard to come by.

Apt 1 should rent for 800-900.

Apt 2 should get 1200.

My partner is covering the acquisition costs using a conventional loan (25% down) in my name. Just under 50k.

I am covering the renovation costs.

I am responsible for managing the rehab, placing tenants, and ongoing property management.

The plan is to split the monthly cash flow once the property is stabilized and hold it for 1-3 years. Then sell after the 1 year mark to avoid the ordinary income tax rate. The backup exit plan would be to hold for a longer term.

For those of you in other markets these numbers won't look great. But for a good neighborhood in Philadelphia it is pretty hard to find a property that meets the 1% rule these days... So I'm pumped!

[Lana Lee]

Originally posted by @Max T.:

@Cliff T. I tried to post the finished product. Links to the listings for both apartments. But @Trixie E. decided it was advertising and removed the post. I guess she thought you might see them and decide to move here from San Fran. But let me know if you'd like me to send them to you directly. 

 I saw the listings and it looks great! Where did you find the deal? Just wondering how much did you spend for renovation? And how would you classify the area A, B, C?