First Rental Investment in Cobbs Creek neighborhood in Philly

[Ankan Basak]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $65,000
Cash invested: $31,000

Single family 3br/1.5ba home, part of a twin. Rehabbed, then rented at 1300$/month. Refinanced with P&I at 500/month. ARV came in at 140k. Cashed out all my investment into deal = Great BRRR. Including monthly maintenance, vacancy, insurance and taxes, cashflow about 500/month

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

To build long-term wealth

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

On Zillow. Not much negotiation here. Price was good already for the area.

How did you finance this deal?

Took out HELOC from my other investment property to purchase the deal

How did you add value to the deal?

Rehabbing to make it rent ready. West Philly market appreciated nicely over a year also.

What was the outcome?

Rented on a year-lease to a family, cashflowing about 500/month

Lessons learned? Challenges?

Challenges were the lost rent due to timing of listing. Rehab time took longer than expected. When rehab finished, it was December, not a good time to list it on market. Took 4 months to get it rented.