Waterloo st. 2/1

[John Dreher]

Investment Info:

Single-family residence buy & hold investment in Philadelphia.

Purchase price: $115,000
Cash invested: $95,000
Sale price: $285,000

This was my first investment property. I took on the project with two partners. A 2 bed/1 bath originally slated as a fix and flip. This was a full gut, and we did the demo ourselves. Hired a general contractor who did a full renovation including adding a half bath on the first floor. We listed the property in spring 2019 for $250k. Accepted a full asking price offer right away. Buyer backed out after inspection due to discovery of evidence of old termite infestation. There was no active infestation, but the contractor never removed the old floor joists on the first floor when new ones were installed. After we fell out of contract, the market took a little dip and the best offer we got was $220k. That would put us close to break-even, so we decided to rent the property out.

We got a great A+++ tenant that rented the property for two years. We decided to list again in spring 2021. This time listed at $285k. We got full asking price again and this time the transaction went smooth. In the end, each partner netted about $15k. Not bad at all for a first timer!