West Philly Duplex turned Triplex

[Dan Powers]

Investment Info:

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

Purchase price: $140,000
Cash invested: $75,000

This property is currently set up as a duplex, but my investor is going to convert this to a triplex because the lot sqft. and zoning in in line to do so. It certainly is going to be a big undertaking but this will cashflow for many yrs to come.

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

What really sold this property was the potential to add more units. Currently set up as a duplex, but with the lot size and zoning to enable to buyer to convert to either triplex or even 4 unit.

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

He worked with Dan Powers @New Western Acquisitions. This was a highest and best deal and he was the winning bid.

How did you finance this deal?

This was a cash transaction

How did you add value to the deal?

With a 75k+ rehab budget and a purchase price of a mere 140k, he is looking at a refi value close to 300k.

What was the outcome?

The outcome is going to be a fully rehabbed triplex.

Lessons learned? Challenges?

This was definitely a large project, took some guts to be able to pull the trigger on such a project but my investor was comfortable enough without even stepping into the property.