Flip in Allentown, PA

[Jason Reynolds]

Hey everyone!

Wanted to post the last flip we sold in December to round out 2023. This was the biggest deal I've ever done, and a huge win to end the year on. Feel free to hit me up if you have any questions:

Investment Info:

Single-family fix & flip

Purchase price: $30,000
Rehab Cost: $54,383.05
Sale price: $250,000

This is our P&L below for this property! Rehab costs, holding costs, loans, etc are all under Cost of Goods Sold. The only expenses you see under expenses are costs we incurred after selling the property. Property Sales Costs is basically commissions and closing costs when we sold it.

How did you find this deal and how did you negotiate it?

This deal came from SMS marketing. The seller had inherited the property, it had been vacant for 5+ years & they hadn't paid the property taxes in several years as well.

How did you finance this deal?

A private lender (a friend of mine who is a dentist) funded 100% of this deal at 12% interest.

How did you add value to the deal?

We did a full normal cosmetic flip on this one, then on top of that we replaced the cast iron sewer line with PVC, replaced all windows, and rebuilt the back bathroom that was damaged by 5+ years of the roof leaking.

What was the outcome?

$139k net profit! The biggest deal I've ever done

Lessons learned? Challenges?

When buying properties that have been vacant for a long time, budget for additional plumbing costs on the rehab. Because this house was vacant for so long, once we turned the water on there were several leaks, and the main sewer line cracked.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

The buyer's title company was great to work with. They are First United Land Transfer, it was my first time having a closing with them

[Nicholas L.]

@Jason Reynolds

congrats.  I think Allentown is a great market - a lot going on and Philly and NYC right there.  If I lived on that side of the state that's where I'd invest.