Cobbs Creek Luxury 2 bed Rental

[Dan Powers]

Investment Info:

Single-family residence buy & hold investment in Phila.

Purchase price: $110,000
Cash invested: $55,000

This was a classic Cobbs Creek 3/1 that was already gutted and framed out, ready for an investor to finish the work. This property was a rare one with all the mechanicals being updated, PVC piping, a full rewire, and ductwork already running throughout the house. On top of that, it was already framed out to have a huge master bathroom with a custom shower.

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

Every investor generally starting out doesn't want to tackle a rehab too large and just hit the cosmetics. In most cases, you're always taking a chance on the condition of the current equipment, and for flips, most buyers want new mechanicals. It's extremely rare to find a property with all-new mechanicals that truly only needs cosmetics items.

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

This deal was sourced through New Western Acquisitions and was sold on a first come first serve basis.

How did you finance this deal?

This deal was financed through Sherman Bridge Lending.

How did you add value to the deal?

My investor is going to finish all the cosmetic items in the house, as well as dry lock and clean up the basement.

What was the outcome?

The outcome is going to be a beautiful luxury 2 bed 2 bath rental property, with spacious bedrooms as opposed to 3 closet side bedrooms.

Lessons learned? Challenges?

The only challenge was on the title side, the lovely Philadelphia water department got involved and we had to have a metered installed and wait for a new reading to come in when the cycle was over. Long story short, closing got pushed back a whole month. Other than that delay it was a smooth closing.

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

Dan Powers - New Western Acquisitions