Section 8 Rental Property in Philadelphia

[Chris Pelc]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $89,000
Cash invested: $130,000

This property was a fantastic buy/hold opportunity for section 8 rentals in the Philadelphia market. This house has 5 bedrooms which sets its estimated payout from PHA Section 8 in the Group 3 schedule is $2,201/month. With a mild rehab at just around $40k, our all in price is going to be $129k which smashes the 1% rule.

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

Knowing that rents are backed by the government makes me feel secure in my investments for long term holds. Getting such a great rent to value ratio is a lot harder to achieve, especially on the retail market.

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

This deal was sourced through New Western. They are firm on the prices, and it was first come first serve.

How did you finance this deal?

All cash. Will be re-financing when rehab is finished.

How did you add value to the deal?

Updating house with new flooring, fixtures, and a heavy cleaning.

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

New Western in Philadelphia.