Philadelphia Rowhouse Rental

[Stephanie Baron]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $220,000
Cash invested: $51,000

A 1920 brick rowhouse with original hardwood features (flooring, princess archways). I renovated the house to have energy efficient windows, doors, and energy source (solar panels). I added a new roof, updated the electrical, added a new boiler, installed air conditioning, and refinished the original hardwood flooring throughout the house. I also gut renovated the bathroom.

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

I originally bought it as a primary residence and intended on building up equity in it to then tap into for a HELOC to buy a second property.

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

I worked with a local real estate agent and he negotiated on my behalf since this was my first time buying a house.

How did you finance this deal?

Conventional mortgage with 15% down payment. I had received a small windfall that allowed me to purchase the property.

How did you add value to the deal?

I added green energy sources (12 solar panels), gut renovated the bathroom, added energy efficient doors and windows, finished the basement, refinished the floors, and put on a new roof.

What was the outcome?

I was able to rent out the house in 3 weeks and for $2050 / month which covers all the renovation loans and mortgage and cashflows $360 / month.

Lessons learned? Challenges?

Really vet contractors and do not go with the cheapest one.