What happens when you identify the right neighborhood at the right time? In 2016 we targeted a small area in East Mt Airy, AKA Cedarbrook, where there were many distressed properties but signs that prices were on the rise. We were new to rehabbing so went a little overboard on the rehab. And we missed a window for getting a rent increase, yet…
Purchase Price (incl. closing costs): $88.294
Rehab: $39.451
Total: $127,745
Rent: $1,320 — same tenant for 3.5 years with most of the rent paid by section 8 voucher (guaranteed income)
$15840/yr Gross Income
taxes $1750
insurance $850
Capital expense – $1500
Management Fees $1,108
Misc $600
Value of the house today: $180,000
Comps within .25mi
8511 Fayette St, Philadelphia, PA 19150 Sold in 05/2020 for $214 ($4k over asking price)
If we sold at end of 2019: $47,552 profit after closing costs divided by 38 months =$1251/month ($15,016 annual) 20% annualized return if sold 12/2019