Hey All,
Newer member here, but have digested hours and hours material on this fantastic site.
So far, I own an out of state rental in NC, a duplex in Northeast Philly and am about to close on a duplex in Manayunk in a few weeks. Currently I'm renting an apt in the city with the GF (city living was a priority in my single days) and after months of frustration with paying high rent, a move had to be made. (Thanks to Rich Dad Poor Dad for the extra push to cut expenses)
The property in Manayunk needs about 20- 30k of work; depending on how much owe do ourselves, but we plan to house hack our way to a BRRR.
Purchase Price - 150k, 4.5% investment loan, 25 percent down.
Zillow Estimate is 235k, but I think the property could easily sell for 250k when all repairs are completed.
Mortgage Payment with Tax and Insurance - Roughly 850
Rent - 900 to 1100 for the front 1BR unit.
1200 to 1500 for 2 BR rear unit.
We will live in the rear 2 BR unit for at-least a year and then will hold the property as a long term rental. Have been looking around for a duplex in that area for over 6 months, but haven't been able to find anything that met our criteria for under 225k, so we jumped on this opportunity and snatched up the property within 3 days of listing.
The plan is to refinance the property after repairs, and hopefully pull 15-20% out and repeat on another Multi Family unit.
My only fear is that I tapped into my 401k for a loan, but the interest rate is the same as the mortgage, so I counted that as a wash.
Any thoughts on the move? Anyone else have any experience in the Manayunk area? Honestly, I'm a little nervous about being so leveraged out (400k in mortgages, 5 units) but a big change had to be made.
Thanks for reading and letting me vent all of that out a bit.
