SFH - Allegheny West Philly - BRRRR

[Alex Capozzolo]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $50,000
Cash invested: $34,000

Contributors:
Jon Sanborn

Our Team's third property purchased! This is a big SFH (big for parts of Philly) at 1,320 sq ft. The neighborhood is Allegheny West, 19132 - There is a ton of new development nearby, which excites us! Our plan is to BRRRR this property. Not sure if we can pull everything out, but we hope to be close. The rehab only took 2 months, which was quick for us! Starting the tenant search process next week, and then looking to refinance.

How did you finance this deal?

This was the first deal that we've purchased from a wholesaler, and it went super smooth!

What was the outcome?

We expect this to cashflow $62/mo after all expenses accounted for. Not a home-run, but hitting singles / doubles will get us to our goal! Small bricks build big houses :)

[Christian Locke]

Hi Alex, I was looking at this neighborhood in Philly and see opportunity but have some concerns. I was curious to know if your experience has been positive thus far and if you are using a property managing company. It would be great to hear how it is going now. 

[Kevin M.]

@Alex Capozzolo congrats. Any photos? BR/BA and target rent price? Do your numbers require self-management?

You don't often see projects accomplished in total under $100k I'm interested to see how it turns out.

[Alex Capozzolo]

@Kevin M. it ended up working out! Appraised at $125k so we were able to pull just about all of our money out, I think we left in $3k. Happy with it :) 

It rents for $1075/mo

Cashflow isn't amazing on this one but it's positive and we got in for cheap

[Alex Capozzolo]

Hey @Christian Locke yeah Philly has been great so far. Compared to other cities around the US, it can be more complicated dealing with the city / pulling permits / admin things like that. But overall, you can find cashflow and appreciation in the same purchase which is why we like it.

We interviewed several companies. Ended up going with TCS Management. We are 2 months in and not 100% happy. Nothing is on fire, but the transition has not been great.

[Rich O'Neill]

@Alex Capozzolo Nice work! Yes the city is a pain to deal with, but those are healthy numbers. Only leaving $3k in a deal is great in this market. 

I have heard similar stories about TCS. They are fine, but not great. Seems like you are a number to them, especially if you don't have a large portfolio. Give @Kevin M. a call, I have a client that works with him and has been very happy.