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Updated about 3 years ago on .

User Stats

29
Posts
16
Votes
Ryan McLaughlin
  • Real Estate Agent
  • Philadelphia, PA
16
Votes |
29
Posts

Short term rental, cosmetic rehab - Manayunk, Philadelphia

Ryan McLaughlin
  • Real Estate Agent
  • Philadelphia, PA
Posted

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $172,000
Cash invested: $57,000

Just completed this old smoker's house. I know you've heard of popcorn ceilings but have you heard of popcorn WALLS?! Let's just say I probably got mesothelioma from this one. This one took way to long and I tried to do too much myself. But we are up and running - now leasing to traveling nurses, fully furnished, w/ all utilities included for $2750/ mo. PITI: $1061! it's not worth $265K :)

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

We've had a lot of success by house hacking an apartment into our current primary in the Manayunk section of Philadelphia. I wanted to replicate on a slightly larger scale. This project fit the bill.

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

This deal was presented to me by a neighbor who knows I work in real estate.

How did you finance this deal?

Conventional financing. We considered BRRRRing it but the low PITI was too attractive and it seemed like a great place to park some cash.

How did you add value to the deal?

Full cosmetic overhaul. This was badly smoke damaged by a heavy smoker that never opened a window in 10 years. Hardcore elbow grease. Shellack primer, and cigarette tar in my eyes for weeks. Yuck! But it paid off. $15K in rehab costs probably added $70 in equity.

What was the outcome?

We have taken our first 3 reservations - 30 day minimums at $2750/ month. PITI here is $1060. Even with utilities, this is a cashflow monster in a well established Philadelphia neighborhood.

Lessons learned? Challenges?

I took on too much of the work myself here and took my eye off of my business as a Realtor. The money I saved in labor was dwarfed by the time I lost in the trenches by not selling houses. I underestimated the project and learned the hard way... again.

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

This one was all me :)

  • Ryan McLaughlin
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Keller Williams Empower
5.0 stars
19 Reviews