Flip in Lawrenceville Neighborhood of Pittsburgh

[Sean H.]

I wanted to put together a deal diary for our upcoming flip project in Pittsburgh. It is in the Lawrenceville neighborhood of Pittsburgh which is a very trendy area.

We found the property using a direct mail campaign targeting absentee owners with equity. We used a specialty mail piece and @Ryan Dossey's live answering service to book the appointment. From there, we met with the seller and walked the property. He ended up buying two houses side by side and his wife was only letting him keep one to live in. We agreed to purchase the property for $90,000. The numbers should play out like this:

ARV: $215,000

Purchase Price: $90,000

Rehab: $45,000

Soft Costs: $39,000

Total Costs: $174,000

Expected Profit: $41,000

We are using a hard money lender to finance the deal. We got in a bit of a jam and got this project, as well as four others under contract at the same time, so finding lenders who will allow us to keep our projects moving forward is a struggle.

We are set to close next week, so I will keep everyone updated as we go through the process.

[Sean H.]

A quick update, the closing was delayed until Wednesday.  Our local water authority is making life a bit difficult and is delaying getting a final payout number.  I hope that everything is taken care of by Wednesday and we can get started!

@Ray Lai I definitely agree on the numbers being the sexy part. We were pretty conservative, so hopefully the actual numbers come in even better!  Check out Tucker Merrihew's Real Dealz podcast and his Deal Finder's Academy.  They go really deep into marketing, a portion of which is the specialty mail piece.