Duplex in Southwest Philly

[Ugochukwu Opara]

Investment Info:

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

Purchase price: $60,000
Cash invested: $26,000

Single conversion to duplex (1+1)
This one wasn't too bad, partial gut.
We had to add an addition in the back that consumed the entire backyard.
This was actually a plus since the conversion would not allow access to the backyard.

Rent for this, leveraging the blessings of PHA
Unit 1 (1 Bedroom) - $935
Unit 2 (1 Bedroom) - $935
Gross Monthly Rent - $1870

Loan (Mortgage, Taxes, insurance, ETC) - $850/m
Savings for Rainy Day - $200
Operations - $50
Water - $50

Net Cashflow - $720/m or $8640/year
Cash on Cash - 33%

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

Zoning allowed for more units than the current owner had in place.

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

MLS

How did you finance this deal?

Hard Money
15% down
100% of renovations
no payments until renovations are done.

How did you add value to the deal?

Gut rehab and conversation from 1 family dwelling to 2 family dwelling.

What was the outcome?

33% cash on cash

Lessons learned? Challenges?

One way street made it difficult at times to not piss off the neighbors when dropping off materials.
The constant fear that someone was going to break in.

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

Agent (myself) - Ugochukwu U. Opara
Lender - JumpStart (Philadephia Only ... for now)
Title - Quick Abstract (Black Owned!)