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Updated over 8 years ago, 05/21/2016
Philadelphia, PA - Brewerytown Flip - Troy S. & David Ross
If you'd like to follow along and watch as my partner @David Ross and I flip a Brewerytown row home, the link to our blog is below. I'll also post pictures and updates in this thread but I won't replicate what David has already done so well to date. He's the keeper of spreadsheets so I won't go into numbers too much but it's safe to say, we're in over our heads already. I *think* we'll get through this and make some (very little) money but there are no guarantees. The beauty is, David and I are very similar in our approach to this first flip; first and foremost, we want to put out a product we're proud of. Secondly, we won't feel we've failed if, once the flip is sold, we can break even. If we can get a free education from the school of hard knocks, sign us up. Obviously we went into this flip expecting to make money, and we still could, it's just never been our focus since day one. That said...DAMN it'd be fun to turn a profit!!!
Here are a few baseline numbers:
Purchase - $60k
Rehab budget - Initially $20k and 3-4 weeks, now scope has ballooned and we're at $40k and 2 months
ARV - Initially $115k, now $135k. We weren't going to move walls or finish the basement but, to compete and to offer a comparable product to others that have sold, we felt we must (so did our wives). There are a few sold comps that support this but, not on this exact block and Philadelphia is not just a city of neighborhoods, it's a city that can change drastically block-by-block and property values are no different. One block the wrong direction can be an easy $20k difference.
So, follow along, ask questions, tell us what we're doing wrong (and right, if that were to happen) and enjoy the show.
Finally an update! From the blog:
Finally some more photos and progress!
We had a slow few weeks between trying to get drywall completed and finding a crew to finish out the project. Now we're working with a local contractor who is moving quickly and professionally.
Here's what we've been up to since our last update:
- Drywall finshed
- Interior Painting
- Trim and doors throughout
- Exterior rear repairs and paint
- Basement flooring
- Hardwood flooring on first floor
- Kitchen cabinets
First floor showing finished trim and new hardwoods
Kitchen coming together. IKEA cabinets (and soon Whirlpool EnergyStar Appliances and Quartz countertop)
Solid maple hardwood on the first floor. Runs throughout living, dining, and kitchen.
Basement viewing back towards stairs, bathroom, and HVAC closet.
Basement viewing entertainment/additional living area.
Rear bedroom showing trim and doors
Bathroom getting ready for tile
Now we're seeing the end of the project with more clarity. We should be wrapping up in the next two weeks or so, and with a little luck, have the home completed and listed by April 1.
Fun stuff happening now! Bath is tiled and the Ikea closet system is installed. Fun tip for the day...when the ceiling is that out of level, don't tile all the way up to it. Lesson learned.
Few sneak peak pictures. Should have professional photos and an actual listing to share early next week...
Great work @Troy Sheets! Have you blogged about your flipping before this?
Originally posted by @Jared Lichtin:
Great work @Troy Sheets! Have you blogged about your flipping before this?
Thanks! We have not. We were inspired by @J Scotts forum thread where he documented a new construction build and a few other generous rehabbers that have documented their projects.
@Troy Sheets I just started doing the same thing. & Yes, very inspired by J's work. I havent had much of a chance to update my website recently, but let me know what you think. FlipJL.com .. Thanks!
@Troy
@Troy Sheets: It is amazing to see this project making so much progress. Thanks for sharing your process of finding and working with reputable and competent contractors.
Few more lessons. Make sure EVERYTHING you can think of is on your scope of work. We missed a few odds and ends and they've cost us dearly in personal time as we did the work ourselves just to wrap up.
- Returns of unused materials. I have a smallish SUV and @David Ross has a compact car. Tough fitting boxes of hardwood flooring in either. Plus, the Home Depot clerks get really pissed when you have 3 carts of stuff to return, some on your card, some not. David paid for some with his card, so you have to break it up between store credit and refund on the CC. Sorry to bother you at work :)
- What I call "rough" clean up. We have a cleaning lady in today but she's not shop-vaccing up construction debris and the like or standing on a ladder to clean the outsides of the casement windows, picking floor protector boards up, disposing of trash, peeling stickers off of appliances and setting up shelves and burners...
- Odds and ends like applying Deck Over to the deck, painting basement stairs, etc. Somehow these slipped through the scope. We did get a few things in for free like backsplash install but, overall, it's still a good many evenings and weekends worth of work we got stuck doing
- The electrician pulled a permit for the whole house! This means everything now has to be brought up to current code. Tamper-resistant receptacles throughout, arc fault breakers, etc. This mistake on his part will cost us ~$1,000 in labor and materials and we didn't find out till we failed electrical inspection late last week. Failing the inspection wasn't a big deal, changing out ~$700 worth of breakers and receptacles hurt though, especially since all the receptacles were already new...just not tamper-resistant
On the bright side...WE'RE DONE!!! Pro photos are being taken for the listing today and it should be on the MLS a day or two after that.
Originally posted by @Troy Sheets:
If you'd like to follow along and watch as my partner @David Ross and I flip a Brewerytown row home, the link to our blog is below. I'll also post pictures and updates in this thread but I won't replicate what David has already done so well to date. He's the keeper of spreadsheets so I won't go into numbers too much but it's safe to say, we're in over our heads already. I *think* we'll get through this and make some (very little) money but there are no guarantees. The beauty is, David and I are very similar in our approach to this first flip; first and foremost, we want to put out a product we're proud of. Secondly, we won't feel we've failed if, once the flip is sold, we can break even. If we can get a free education from the school of hard knocks, sign us up. Obviously we went into this flip expecting to make money, and we still could, it's just never been our focus since day one. That said...DAMN it'd be fun to turn a profit!!!
Here are a few baseline numbers:
Purchase - $60k
Rehab budget - Initially $20k and 3-4 weeks, now scope has ballooned and we're at $40k and 2 months
ARV - Initially $115k, now $135k. We weren't going to move walls or finish the basement but, to compete and to offer a comparable product to others that have sold, we felt we must (so did our wives). There are a few sold comps that support this but, not on this exact block and Philadelphia is not just a city of neighborhoods, it's a city that can change drastically block-by-block and property values are no different. One block the wrong direction can be an easy $20k difference.
So, follow along, ask questions, tell us what we're doing wrong (and right, if that were to happen) and enjoy the show.
Hey Buddy:-)
I'd definitely like to see before and after pics and even visit the finished gem if you don't mind before its occupied of course. I just saw your post here, sorry I haven't been as active on BP lately. We'll talk. I know you'll come out on top.
Kudos,
Mary
Thanks @Luis Rosario and @Mary B.!!!
We're actually having a BP Open House this Saturday, 4/11, from 5pm-8pm. The address is 1340 N. Dover St. 19121 and anyone that is interested in seeing the finished product, networking, or just being nosy :) come on by! Please RSVP by Friday afternoon so we can get a good count for food and drink. Pizza, soda and beer, nothing too extravagant, but free food and beer is tough to beat! Bring your families with you!
@Garrett M.@Jeremy T.@Renee Gambacorta@Prashant P.@Drew Palmer@John Matthews@Mark Redmann@Jon Lafferty@Account Closed
I tagged people I've talked to or met just to get their attention but all BP'ers are welcome!
Free beer and the fiance out of town. Consider me 100% RSVP'd.
VERY nice job on the exterior - that looks great! I may not make it to the city Saturday, but have fun! Hope you have lots of appointments by then too!
Originally posted by @Troy Sheets:
Thanks @Luis Rosario and @Mary B.!!!
We're actually having a BP Open House this Saturday, 4/11, from 5pm-8pm. The address is 1340 N. Dover St. 19121 and anyone that is interested in seeing the finished product, networking, or just being nosy :) come on by! Please RSVP by Friday afternoon so we can get a good count for food and drink. Pizza, soda and beer, nothing too extravagant, but free food and beer is tough to beat! Bring your families with you!
@Garrett M.@Jeremy T.@Renee Gambacorta@Prashant P.@Drew Palmer@John Matthews@Mark Redmann@Jon Lafferty@Account Closed
I tagged people I've talked to or met just to get their attention but all BP'ers are welcome!
I'm not a beer lover but still consider me RSVP'd.
Kudos,
Mary
Thanks for the invite. My daughter's first birthday party is that afternoon so I probably won't be able to make it. I would love to check the place out though, so I will try to run down there closer to the end. It all depends on how much cleaning up I have to do.. If not, I look forward to the pictures for the listing being posted soon!
@Troy Sheets Congrats! I should be able to make it, but my area is doing the Philly Cleanup Day, followed by a potluck that I'm supposed to be helping to organize, so probably should attend. I'll plan to come by after that! I'm not really a beer person either. Sometimes I try to drink one to fit in with the cool kids. :-p
@Troy Sheets
Thanks so much for the invite Troy! I'll be participating in my martial arts group's monthly event this Saturday, so I unfortunately won't be able to join. However, I am excited to hear more!
Blessings everyone!
Awesome! I'd love to be there but I've got an event in Delaware all day Saturday. Great call on inviting BPers though, I hope it catches on!
I'll echo the the comment made by @John Matthews. Great idea with the BP open house. I'll be sure to be there on Saturday and finally meet you in person.
Fingers crossed, we're live! Looking forward to seeing everyone Saturday.
https://www.redfin.com/PA/Philadelphia/1340-N-Dove...
I'll let @David Ross update everyone with the numbers once we have them. Still a few outstanding invoices so we don't have totals yet.
@TroyS
I'd like to RSVP as well. I've read you and your partner story and it's a very accurate account of what the ups and downs of flipping are about. I've also been looking in the area for a flip of my own and can't wait to see yours in person.
Originally posted by @David Hairston:
@TroyS
I'd like to RSVP as well. I've read you and your partner story and it's a very accurate account of what the ups and downs of flipping are about. I've also been looking in the area for a flip of my own and can't wait to see yours in person.
See you there David!
I was unable to make it down today. How did it go?