New Manayunk Flip - Philadelphia

[Ryan McLaughlin]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $167,000
Cash invested: $49,000

This is a SFH flip I'm taking on with my wife and a parter in Manayunk, Philadelphia. I sourced the property off market. The house was visibly in need of repairs and when the tenants were moving out I sought out the owner. Tracking him down through a neighbor, I was able to work out a fair price for the house and we closed right after Christmas. Initially, Jackie and I planned to take on this project by ourselves with a minimum scope of work: rewire, central air, kitchen, bath and floors. I brought our now partner through - an experienced GC and builder, to get his eye on the project and he took a liking to its potential. He offered to partner with us as GC, expand the scope, thus upping the ARV and we couldn't say no. We are 50/50 partners in and out.

We are funding through a hard money lender, Direct Mortgage here in Philly who I highly recommend. This 3 bed, 1 bath, 1450 sqft rowhome will soon be a 4 bed, 3.5 bath with 2100 sqft - by adding livable space to the basement. We should be on the market by the end of summer and we hope to list for $425K. We anticipate having $49K tied up in the project - mostly funded by our new HELOC.

My favorite thing about this project is being hands off in the construction. We are assisting with accounting, design input and logistical coordination when necessary but are not involved in the day to day operation. This allows us to focus on our business as Realtors. I've learned the hard way that when I try to do too many things at once, I don't do any of them well. I'm looking forward to watching and learning from our GC/ parter as I have in the past, bringing more construction knowledge into my orbit which makes me a better Realtor and investor.