185k Philly One Family - appreciated by 100k in 6 years

[Ariela H.]

Investment Info:

Single-family residence buy & hold investment in Philadelphia.

Purchase price: $185,000
Cash invested: $36,000

This is a simply brick one family rowhouse in a desirable residential area of Philadelphia with a hip downtown area within walking distance.

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

The prices in this area were attractive, the house was solid and newer (built in the 50's). A one family row house seemed like an attractive option because it doesn't require as much maintenance as a stand alone house.

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

I looked on the MLS and made an offer without even seeing it. I had 24 hours to check it out and make sure we wanted to go ahead with the deal.

How did you finance this deal?

Conventional 30 year with 20% down.

Lessons learned? Challenges?

We put the rental on the market in winter which was challenging. We took a chance on our tenant who had a poor credit score. We offered him a six month lease with the thought that we could easily rent it to a new tenant in Spring. He turned out to be a reliable tenant and has stayed in the home since we bought it.