That’s right, Hipsters! We are traveling back to Philly today – with an amazing turnkey duplex with an amazing buy-in price. Be prepared for sticker shock (in a good way).
Because let’s get real. We’ve gained about 100 pounds just because we love investing in Philadelphia and those darn cheese steaks so much. Yikes! But how can you beat market rents increasing 10% in the last 4 years? Or how the market-wide vacancy rate remains under 5% (which means there’s a high demand for rental properties)?
So how about it? Ready to check out this duplex that puts $893 in your pocket every month? Better jump on it fast before it’s snapped up by someone else!
Built In: 1940 (fully renovated)
Purchase price: $103,500 (not a foreclosure, normal sale and with tenants in place as condition of closing!!)
Property info: 2 bedrooms, 2 bathrooms, 1,600 square feet, 2 stories
Monthly rent collected: $1,275
Property taxes: $62
Property management fees: $102
Monthly expenses (conservatively estimated)
Vacancy (7%): $89
Repairs (5%): $64
Total Monthly Expenses- $382
Net Income = Income – Expenses = $893
Cap Rate =
annual net income (non-inclusive of mortgage payment) / purchase price = 10.36%
Cash-on-cash return =
Depends on your leveraging.
- Appraisal Guarantee: Renovated property guaranteed by Seller to appraise for more than you paid (or seller will buy it back)
- Renovation Cost Guaranteed: Seller guarantees the cost of renovation quoted up front (or seller pays the overage)
- 120 Renovation Completion Guarantee: Seller guarantees renovation completion in 120 days (or seller starts paying you the full gross monthly rent on day 120)
- Rental Amount Guarantee: Seller’s Property Manager guarantees the rental amount quoted (or Seller’s Property Manager will pay you the difference)
- First 6 Months of Ownership: Comprehensive Maintenance Guarantee on Entire Property – Property Manager will cover all labor and materials for any maintenance required during your first 6 months of ownership if you use the Seller’s Property Management Company
- First Year of Ownership: Rental Guarantee – Property Manager will pay you the full gross monthly rent in the event that any of your tenants defaults during your first year of ownership if you use the Seller’s Property Management Company
- First 3 Years of Ownership: Full Manufacturer’s Warranty on Brand New Stove and Hot Water Heater
- First 15 Years of Ownership: Full Warranty on Brand New Rood – Provided by roofing company
If you are interested in this property or seeing others like it, contact Melissa at firstname.lastname@example.org. Take the plunge: you won’t regret it!