Deal Analysis - SFH Philadelphia

[Andreas F.]

Hello all,

appreciate your advice and feedback for the following deal. It is a SFH located in Philadelphia N 59TH Street.

• Purchase Price: $74,020
• Monthly Rent: $950
• Est. Monthly NOI $615

• Year Built:	1955
  Bedrooms:	3
  Bathrooms:	1.0
  Floor Area:	1150 Sq Ft
  Land Area / Lot Size:	1076 Sq Ft
  Stories:	2 Stories

• Property is offered via a TK provider, would be fully renovated with new roof, plumbing, electricity etc.
• Cap rate would be at 9.7%
• Location wise it is a B location

What do you think about that offer? I know the area a bit and  think it is a B location. Investment wise I am looking to buy for cash flow. Cap rate looks ok, only question I have is re the offer price. I think there is not much equity build into and that relates to the point of exit strategy, e.g. selling it after 5 years.

thx, Andreas

[Matt R.]

Originally posted by @Andreas F.:

BTW - is there on BP any kind of definition of what differentiates a B vs C vs D location?

 There are different opinions and more elaborate explanations but here it is in a nut shell.

A hood = you and your family would live there.

B hood = you and your family could live there.

C hood = you and your family could live there if it was an emergency

D hood = you would rather be camping.

thanks,

Matt