Purchase & rehab of 3-unit (Philadelphia)

[William Zhang]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Philadelphia.

Purchase price: $360,000

Acquisition and rehab of a 3-unit multi-family building in Bella Vista neighborhood of Philadelphia

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

Opportunity to purchase an older building in a nice neighborhood, and add value to it, including converting units, and improving the layouts, and renovating them

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

Worked with a realtor to find this off-market deal

How did you finance this deal?

Commercial mortgage lender

How did you add value to the deal?

Total gut rehab - involved in every stage of process, including:
- working with architect to redesign and convert two of the 1BR units to 2BR units
- working with contractor to manage renovations, including on plumbing, electric, and HVAC systems
- working with City of Philadelphia on permitting and inspection process

What was the outcome?

**After about a 8 month rehab process (permitting and approval process with the city added time to this process), listed and rented the units out. Will look for opportunity to potentially refinance as rates hopefully fall. **Also approved for a 10-year tax abatement which materially enhances the cash flow profile of the property vs. similar investments

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

Yes! Feel free to reach out if you're in the Philly area 

[Eric Greenberg]

Sounds like a great deal! Can you share the cost for the renovations and rental prices? Cheers!