In 2020, we purchased a property in Lower Bucks County Pennsylvania in what we identified as a solid, growth area with good potential for appreciation and ROI. It was located in a seventy year old group of neighborhoods that we believed to be at the cusp of change.
Purchase price: $157k
Property Condition: The owner who lived in the property knew just enough to do a lot of shoddy work on the house himself and we figured there would be some surprises during our rehab, Three years later there is still the occasional surprise, like the upper kitchen cabinet that came crashing off the wall because it was not connected to a stud. It was also the first investment where we discovered termites and termite damage while renovating. Then there was the city inspector who told us that the electric panel needed to be brought up to code and after concluding that the roof was likely to be a potential cause of problems, we decided to replace it and avoid future issues.
Total investment: $190k
Results: By summer 2023 we can conclude this was a standout winner.
Rent: The property has been fully occupied since the rehab was complete and current rent is $2,100.
Appreciation: On the same block, a few houses away an exact comp was sold for $339k. This all happened within in three years.