Strawberry Mansion Buy and Hold

[Kevin Uzelac]

Investment Info:

Single-family residence buy & hold investment in Philadelphia.

Purchase price: $65,000
Cash invested: $30,000

This property is in a nice rental pocket that should see some decent appreciation in the coming years as it continues to gentrify. My investor bought this for $65k using our HML Sherman Bridge Lending. His rehab budget is $50k and the ARV appraisal came in at $151,718. The lender required 20% down, 3 points up front in fees and 11.99% interest on the loan. He plans on refinancing after three months when the project is finished.

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

The rental rates versus the cost of real estate in this area are what interested my client. He is going to rent this out for around $1300/mo for 1 year or so, allow for some appreciation, then sell. There is a rental right down the street getting $1300/mo with no central A/C. I am excited to see how this project turns out!