Are you ready to buy-renovate-refi with us in Philly? It’s a new model we’ve found that can be huge for turnkeys! Let’s take a look and find out why this is where you want to purchase your next property.
Because 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)?
Ready to check out this property? Better jump on it fast before it’s snapped up by someone else!
Built In: 1929 (fully renovated)
Purchase price: $79,200 (not a foreclosure, normal sale and with tenants in place as condition of closing!!)
Property info: 3 bedrooms, 1 bathroom, 1,030 square feet, 2 stories
Monthly rent collected: $1,000
Property taxes: $37
Property management fees: $80
Monthly expenses (conservatively estimated)
Vacancy (7%): $70
Repairs (5%): $50
Total Monthly Expenses- $302
Net Income = Income – Expenses = $698
Cap Rate =
annual net income (non-inclusive of mortgage payment) / purchase price = 10.57%
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
* Philadelphia properties are available for CASH PURCHASE ONLY on a “buy-then-renovate” model. These are properties in high-demand Philly areas. You will get a professionally renovated property, then have the new appraised value be more than your total out of pocket expenses.
Note: The total (already discounted) price shown for all Philadelphia properties includes the price of the distressed property PLUS the full renovation cost.
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!