North Philly BRRRR: Full rehab two 1 bedroom apartments

[Armando Ramirez]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Phila.

Purchase price: $65,000
Cash invested: $60,000

Property listed for sale for $65,000 on June 21.
Contract signed on June 25; All cash purchase, no contingencies, escalation clause up to $70,000.
Closing July 26 or sooner if possible.

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

Cashflow

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

MLS...I jumped on it quickly and made a strong offer with escalation clause to beat any competing offers.

How did you finance this deal?

Hard money

How did you add value to the deal?

I know the area and know that legally zoned multi families have become scarce due to a blanket rezoning of parts of this neighborhood.

What was the outcome?

Currently in contract, awaiting title, taking contractor bids.

Lessons learned? Challenges?

I learned more in the past 6 months by missing out on 3 excellent deals than ever before in my pre-investing educational journey.
This area is rapidly appreciating and sellers rarely sell in this particular pocket of Olde Kensington. I learned a lesson by missing an opportunity to buy 2532 N Hancock for $95k the block over from this property. I took too long on my due diligence and the sellers lost confidence in me and decided to list the property on MLS. 2532 N Hancock sold for $137k.

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

I represented myself as the buyer 😎