New Philly Triplex, newbie impatience or bad decision?

[Sean Ezeamama]

Hi BP team,

I’ve been trolling the forum for years and just closed on my first rental property in Philly, a triplex.

Close date was 4/15 and no lie, the last 45 days have aged me with stress and anxiety(I’m 27).

I purchased just outside a college area, not really a prime location/there is a new property being built right next door, which started the week I closed and development on my block.

Long term, maybe my home value increases w the development — BUT it literally killed the lighting/views in a couple units which is making tenant finding harder (plus construction noise) and I kind of already knew my challenge would be in placing tenants. The house is renovated, clean and was delivered vacant to me.

It just has no amenities, it’s like very basic 2 bedroom housing. That said with a monthly mortgage of ~2800 - I thought once I can get the units rented, however hard - I’d be in decent shape with cashflow and have a base hit type of first investment. 

The 2 vacant units are listed at 1275 and 1300. In 45 days, I’ve gotten one tenant (high credit, seems decent) and a few applications that fell thru based on Tenent financials.

My actionable steps I’ve thought of:

1) lower price - I have $1580 liability left and 2 units to rent - maybe I’m just way to high on my rent price?

2) section 8 rental? On the other 2 units?

Any other thoughts guys?

Over the past couple of weeks, I’ve been so nervous/snappy and feeling awful. I’m currently living in an amazing place my gf bought as part of our plan but I can’t even enjoy it as my mind is on the vacant units. I was able to use my tenants first/last to make the first mortgage payment - I have a 3 months of reserves - work a great job. This won’t be life or death, but I feel like this isn’t the situation I intended in my first deal. I wanted $800 of cash flow rn I have a deficit of ~$1600..

Being that it’s only been 45 days, and this is my first. I need advice.

I make great money in my W2 and am a ninja with saving/investing , really need to find a way forward here. At least to break even, so that I can focus on getting myself out of this and back on the road to making $.

[Jonathan Greene]

You can rent a renovated row house in Philly for 1300-1350 with 3 BR so your rents are way too high. There is no science as to why something doesn't rent. You can talk about the lack of amenities or the building next door, but everything has a price - yours are just too high. What neighborhood is it in? It's still a good investment, you just might have mismanaged your expectations. Now you need to stop letting it sit there and remarket it and get tenants in at a lower rate so you can get money.