Philadelphia Accidental Flip

[Kristy Pedersen]

Investment Info:

Single-family residence other investment in Philadelphia.

Purchase price: $107,000
Cash invested: $23,000

Contributors:
Kristine Pedersen

Purchased this home to BRRR, but found the rental market in this neighborhood did not cast great tenants. I decided to drop the home and list it for sale instead.

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

I was interested in having monthly cash flow generated through the BRRR strategy.

How did you finance this deal?

Conventional mortgage.

How did you add value to the deal?

I renovated the unit; new LVP flooring, painted kitchen, new countertops, new appliances, new light fixtures, remediated termites, removed dated paneling in the bathrooms, painted all the walls. Visit https://kphomereno.com/rental/ for more photos and details. 

Lessons learned? Challenges?

Knowing the market you will be investing in is key!! Driving through the neighborhood I felt safe and fell in love with the block this house was on. For that personal impression, I overestimated the quality of tenants in the neighborhood. The people visiting the house either did not follow through with the applications, or had very low credit scores. I needed to make a decision, so I ended up flipping it. I lost some money on this deal because of that (to lender fees, taxes, agent fees, ect).

[Kristy Pedersen]

Originally posted by @Nick Brown:

Very nice! What neighborhood was this?

This was in the Logan neighborhood - West of Broad Street. This neighborhood is good for investors right now, but specifically the West side of Broad I felt much safer visiting for when I had to check in on the unit.