NEW CONSTRUCTION SINGLE FAMILY BREWERYTOWN PHILADELPHIA

[Troy Sheets]

Let's not be coy, we overpaid for this lot, but we knew it going in this time...which is a refreshing change for us. We bought this lot as a marginal deal thinking that if all went well we'd be lucky to make $30k and, if it went poorly, we'd break even. If it goes really poorly we'll be paying for our education.  We have a couple other reasons we intentionally overpaid for a vacant lot: 

- We own a 3100 sq ft (increasing to 3600 sq ft) building across the street that we're keeping as a higher end 3-unit rental (rehab kicks off in a month or so, budget of around $250k-$300k) 

- We wanted to learn the new construction process on a smaller project before we kick off a couple 6-unit new construction rental buildings we have lined up. We've been busy assembling land :) 

The kicker is we may have been overly cautious on our comps and could potentially do pretty well on the sale. We paid $85k for the lot and will spend ~$215k on construction. We're expecting to sell around $385k or so as some new construction on a nearby block, in a slightly less desirable location, sold in the $370k range. We're seeing comps creep up in the area and are getting feedback from a couple local developers that we should easily break $400k and possibly get near $450k. I have my doubts but we'll see what happens. As I said, we didn't go into this one looking to make much, it was to improve the area and learn the new construction process for ourselves. If we make some money while we're at it, great! It's also a case of a rising tide lifting all boats; the market has only gotten better in our little pocket of Philly and we may see a decent profit because of that and not our amazing financial/real estate prowess, believe me! 

This house will be 1650 sq ft above ground, 2200 including finished basement, and have 4 beds, 3 baths and a roof deck. Below are renderings my awesome partner @David Ross did. Tagging my other amazing partner @Jeremy T. because he never gets any love on the forums but he's truly the backbone of our little tribe. 

There's all the fun stuff, pictures and numbers, follow along to see how we do! 

Facade rendering: 

Basement rendering:

First floor:

2nd floor:

3rd floor:

Roof deck: