All Forum Posts by: Stephanie Baron

Investment Info:

Townhouse buy & hold investment in Philadelphia.

Purchase price: $220,000
Cash invested: $51,000

I originally purchased this house as my primary residence during the pandemic with the goal of renovating it while keeping the charm of the original features. I custom designed all the windows and exterior doors. They are energy efficient and help reduce the monthly heating bills. I had 12 solar panels and a new roof installed. I added a new boiler, installed air conditioning mini splits, and refinished the original hardwood flooring throughout the house. I remodeled the bathroom and yard too.

How did you finance this deal?

I received a windfall during 2020 and decided to purchase this property and make it my pandemic project. It has a conventional 30 year loan.

What was the outcome?

A beautifully charming rental where the electric bill is included in the rent (thanks to the solar panels)!

Lessons learned? Challenges?

Never go with the cheapest contractor and make sure to do background checks (in case they have a history of ripping off clients).

Investment Info:

Townhouse buy & hold investment in Philadelphia.

Purchase price: $220,000
Cash invested: $51,000

A 1920 brick rowhouse with original hardwood features (flooring, princess archways).

I originally purchased this house as my primary residence during the pandemic with the goal of renovating it while keeping the charm of the original features. I custom designed all the windows and exterior doors. They are energy efficient and help reduce the monthly heating bills. In an effort to further increase the energy efficiency of the property, I had 12 solar panels and a new roof installed. Additionally, I added a new boiler, installed air conditioning mini splits, and refinished the original hardwood flooring throughout the house.

The last two projects I completed were remodeling the backyard and a gut renovation of the bathroom. The backyard was mostly broken cement and terrible metal fencing. I added pet safe artificial turf, a wooden fence and a pergola. The bathroom was originally a third bedroom in 1920 and over time became a bathroom. I raised the lowered ceiling, leveled the sloping floor, added under the floor heating, a soaking tub and separate shower as well as high quality quartz tiling and glass shower with brass fixtures and double sink.

How did you finance this deal?

I received a windfall during 2020 and decided to purchase this property and make it my pandemic project. It has a conventional 30 year loan.

What was the outcome?

A beautifully charming rental where the electric bill is included in the rent (thanks to the solar panels)!

Lessons learned? Challenges?

Never go with the cheapest contractor and make sure to do background checks (in case they have a history of ripping off clients).

@Stuart Udis, thank you! I wasn't aware of this. I will take care of this as soon as I can. It is a property built in 1920 and was a rental property before I purchased it. It should technically have passed such an inspectation previously then? 

Hi John, 

Thank you! I did live in it for 2 years before moving. I'm not sure if my husband & I will move back in the future. 

How would you recommend reporting the rental income? 

Investment Info:

Townhouse buy & hold investment.

Purchase price: $220,000
Cash invested: $51,000

A 1920 brick rowhouse with original hardwood features (flooring, princess archways). I renovated the house to have energy efficient windows, doors, and energy source (solar panels). I added a new roof, updated the electrical, added a new boiler, installed air conditioning, and refinished the original hardwood flooring throughout the house. I also gut renovated the bathroom.

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

I originally bought it as a primary residence and intended on building up equity in it to then tap into for a HELOC to buy a second property.

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

I worked with a local real estate agent and he negotiated on my behalf since this was my first time buying a house.

How did you finance this deal?

Conventional mortgage with 15% down payment. I had received a small windfall that allowed me to purchase the property.

How did you add value to the deal?

I added green energy sources (12 solar panels), gut renovated the bathroom, added energy efficient doors and windows, finished the basement, refinished the floors, and put on a new roof.

What was the outcome?

I was able to rent out the house in 3 weeks and for $2050 / month which covers all the renovation loans and mortgage and cashflows $360 / month.

Lessons learned? Challenges?

Really vet contractors and do not go with the cheapest one.

Context: 

I am just starting out as a newbie investor and landlord after many years of hesitation. I have turned my primary single family rowhouse in Philadelphia into a rental. I did this because 1) that was always the intention and 2) I moved to Europe for work and my partner. The property cashflows $360 / month which I'm saving for a rainy day in a US bank account. The property is still listed as my primary home. The tenants have been there for 1year and are good for the most part. 

I'm anxious about making any financial mistakes that will cause me to be in hot water with the government since I am not sure how to report income from an investment property. 

Question(s):

* What would you recommend I do to make sure that I am reporting the rental income appropriatley?

* What do I do to ensure that my property is safe legally from any lawsuits? 

* Should I change what kind of mortgage I have since it is technically no longer my primary residence? 

* Do I need to have an LLC or S corp before claiming this property as an investment property?

Hi Max, welcome! I'm also a novice REI in Philadelphia. I've chosen the BRRRR strategy over house hacking (cannot do roommates again haha). Would be happy to connect to talk real estate!

Hi all! 

My name is Stephanie and I'm in project management for a streaming service based in New York, NY. I'm looking to get started in real estate investing, specifically with the house hacking strategy. Currently, I'm reading The Book on Rental Property Investing by Brandon Turner and in a period of hyper saving to get that down payment for my FHA loan. I'm looking to understand how to evaluate good markets to invest in especially now that we are entering a new world impacted by Covid-19.

Looking forward to chatting with you all!