314 N 12th Street, Philadelphia Investment

[James Cecere]

Investment Info:

Single-family residence buy & hold investment in Philadelphia.

Purchase price: $129,000
Cash invested: $10,000

One bedroom condo in the Loft District; purchased when area was still rough, but will lots of potential. Upgrades to kitchen and bathroom. Expectation is for further asset appreciation as the area becomes more desirable. Rent exceed carrying costs by $400 per month.

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

Great opportunity for equity appreciation and also desirable location for young professionals. Expect to hold for the long term.

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

Realtor brought me the deal.

How did you finance this deal?

Conventional mortgage with down payment.

How did you add value to the deal?

Upgraded kitchen and bathroom.

What was the outcome?

Consistently rented and asset recently valued at approximately $229,000. Some recent repairs required due to a renter making unauthorized enhancements to the unit and also had to be evicted ($1000).

Lessons learned? Challenges?

One bad tenant revealed I didn't have my renters license updated. The city changed the process and I did not get a renewal notice. When I went to evict, I had to get the license renewed first and couldn't claim any owed rent for the period in which the license what not valid.