Pottstown Flip/Rental Opportunity

[Dan Powers]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $65,000

This property was a classic grandma home that needed some TLC to bring it up to modern standards. My investor bought it for 65k with the intent to gut the house and sell as a nice fully rehabbed 3 bed. With comparable trading north of 150k there was plenty of spread for him to make a nice return. As a back up strategy we knew he could always rent the property if needed and bring in a minimum 1500/month.

What made you interested in investing in this type of deal?

What made my investor interested in this deal is having the ability for multiple exit strategies in the hot neighborhood of Pottstown. The house was a classic grandma home so either a cosmetics job needed for a rental or a full gut for a flip. Being a contractor himself helped bring down the rehab budget.

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

Souced through New Western and sold on a first come first serve basis.

How did you finance this deal?

Deal was purchased cash.

How did you add value to the deal?

In talking to my investor since he closed his plan is to gut the house and flip the property. New mechanicals (HVAC, electric, plumbing), kitchen, bathroom, adding a 1/2 bath in basement or 1st floor, new drywall, floors, paint, etc.

What was the outcome?

The outcome will be a great new modern flip in the hot hot market of Pottstown. There is very little inventory available in Pottstown at one time so this is expected to fly off the market the second it hits.

Lessons learned? Challenges?

Only real challenge was deciding which exit strategy he wanted to take. Other then that smooth sailing.

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

Dan Powers - New Western