Newbie looking to start a small fix-flip in Strawberry Mansion

[Ankan Basak]

Hi, I am a newbie, out of state investor looking to start my fix-flip career in Philly. Looking to start with a lower risk project, so I am looking to purchase something under 50K. Found a property in Strawberry Mansion neighborhood for 35k, but confused about ARV. Next door sold for 135k but thats almost a year ago. Any help will be much appreciated. Rehab looking like 60-70k.

Thanks

[Kevin Mathisen]

I have invested heavily in Strawberry Mansion since 2014 and hold over 50 properties in the 19121 and 19132 section of "the mansion".  I first bought in the area to escape the competitiveness of the market I was in and seeing as real estate investors typically follow the herd mentality I wanted to be the first one out to pasture.  I started picking up single family houses for peanuts; like 5 and 10k.  I renovate them all nicely, replacing all the major systems and installing hardwood floors and often even finishing the basements.  Back then I knew beyond the shadow of a doubt that this area would greatly appreciate soon and the past year it has really proven to be true.  The same properties that were 5 or 10k in 2014 are 40k++ now.  Developers from Brewerytown have also taken an interest in the area and are buying and fixing current stock while new construction are starting to pop up on 33rd street- and periphery streets.  This is going to be a great area with its proximity to center city, fairmount park, kelly drive etc.  I would love hearing people scratch their heads at why anyone would invest in the "hood".  This is a cyclical business that tends to follow trends and it doesn't take a genius to put 2 and 2 together to understand.  It does take a strategy though and some faith.  The area is still at a good time to buy in I recommend staying close or on 33rd street (park front!) If able and in the 19121 part.