Northeast Philly (Lawncrest) Rental Property

[Dan Powers]

Investment Info:

Single-family residence buy & hold investment in Philadelphia

Purchase price: $121,500
Cash invested: $25,000

This was a rare find in the Northeast region of Philadelphia. The property was owner-occupied delivered vacant, and mechanically was in great shape. The majority of the rehab was purely cosmetic, redoing the kitchen, bathroom, paint, and carpets. Once that rehab is completed this is going to be a great rental property in one of the most sought-after areas in Philly.

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

What made my investor interested in this deal to start was the area. Northeast Philly is one of the hottest areas in the city, a good investment property in this pocket only comes around maybe once a month if that, so given the chance my investors had to jump on it. Also, the condition was a huge selling point, being owner-occupied it was in good shape as it sat, and simply needed cosmetics to turn this property around.

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

This deal was sourced through New Western Acquisitions and was sold as the highest + best offer. With the starting bid at 105k, I instructed my buyer to place a bid at 121.5k if he wanted to win this property because I knew there was another bid at 121k.

How did you finance this deal?

This deal was purchased through cash.

How did you add value to the deal?

The value being added to the property is going to be through redoing all the major cosmetic items. A completely new kitchen and bath, as well as new carpet and a fresh coat of paint.

What was the outcome?

The outcome is going to be a great rental property where the market rent is $1350 for a good clean 3 bed.

Lessons learned? Challenges?

The only challenge experienced in this project was the seller left behind a lot of her belonging so my buyer had to hire a cleaning crew to move out all the junk, it was an unexpected expense, but was quickly resolved.

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

Dan Powers - New Western Acquisitions