Triplex in West Philly | Ugochukwu Opara, Realtor

[Ugochukwu Opara]

Investment Info:

Small multi-family (2-4 units) hard money loan investment in Philadelphia.

Purchase price: $80,000
Cash invested: $80,000

Triplex in West Philly

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

It was on the market ad a duplex but could actually be used as a triplex by right.

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

Found it on MLS. I knew the realtor who had the listing from other transactions

How did you finance this deal?

hard money

How did you add value to the deal?

Complete rehab and renovations. We added ad deck and expanded the super small bathrooms on the 2 units upstairs. And we also implemented an open concept.

What was the outcome?

The property Appraised for $250,000. I did a cash out once the property was rented.
The bank I use lets me pull out 70% of appraised value, $175,000. I was all in at $160,000 so I paid everything off and kept the 15k for the next project. My mortgage on $175,000 is around $1200/m.

Rent roll is as followed:
2 bedroom - $1100
1 Bedroom - $850
Studio - $750
Gross Rent = $2700
Minus debt (-1200)
Minus expenses (-$500)
Gross income = $1000/m or $12,000 a year

Lessons learned? Challenges?

Contractors screwed me over so hard on this one.
I actually had plans to move into the studio apartment but I got screwed with the rehab so the numbers wouldn't make sense if I live in one of the units.

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

I recommend myself as a licensed real estate agent for Philadelphia and surrounding areas.