Prime Center City Gem: High-Yield Investment on Locust Street

[Mitchell Coles]

Investment Info:

Condo buy & hold investment.

Purchase price: $189,000
Cash invested: $15,000

Welcome to the crown jewel of Center City, Philadelphia—a standout property in my investment portfolio that perfectly combines elegance, location, and profitability. Situated in the heart of the city's vibrant Art District, this 1977-built condo offers an exceptional blend of historical charm and modern living.

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

Investing in this property on Locust Street in Philadelphia, PA, was driven by its prime location in Center City, offering proximity to cultural landmarks, business hubs, and vibrant city life. Its flexibility as a high-yield short-term rental and potential long-term rental ensures strong returns. Purchasing at a value price and adding strategic renovations created significant equity growth. This deal, which combines emotional connection, market opportunity, and long-term financial growth, is a

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

While traveling back and forth to Philadelphia, I stayed in a rental in downtown and met a real estate agent in passing. We started talking about the building, and the agent mentioned a condo whose owner they had spoken to about potentially selling but wasn’t ready to list with an agent yet. This casual conversation turned into a unique opportunity, allowing me to connect directly with the owner and negotiate a fair deal before it officially hit the market.

How did you finance this deal?

I financed this deal using a combination of cash and a private lender. This strategy enabled me to close quickly and secure the property before it went on the open market, while also allowing flexibility for renovations and maximizing overall investment potential.

How did you add value to the deal?

I added value to the deal by strategically investing $15,000 in targeted renovations, including modernizing the decor and enhancing the property’s appeal with stylish finishes and functional updates. These improvements significantly increased the property’s market value and rental potential, attracting premium short-term rental rates and ensuring high occupancy. The addition of a private balcony and standout interior design further elevated its appeal to both short-term and long-term tenants.

What was the outcome?

The outcome was highly successful, with the property's market value increasing from $189,000 to $315,000 after renovations. It consistently achieves 95-100% occupancy as a short-term rental, with nightly rates ranging from $350 to $550, generating substantial cash flow. This property has become a standout in my portfolio, delivering significant equity growth and consistent high returns, while also maintaining flexibility for long-term rental opportunities in the future.

Lessons learned? Challenges?

Lessons learned include the value of building relationships, seizing off-market opportunities, and leveraging cash with private lending for flexibility. Strategic, targeted renovations focusing on market appeal significantly boosted value and rental income. Challenges included navigating owner hesitations, coordinating renovations within budget, and managing high expectations for occupancy and pricing in a competitive rental market. Patience and attention to detail were key to overcoming these h