DelCo Seven Unit Flip

[Kevin Branin]

Ridley Park, PA Seven Unit Flip

Since I started buying property last year, I have wanted to get into doing fix and flips, buying and holding large MF, and getting involved with commercial lending.  Then this deal popped up and had the potential to solve all three.  Buy an apartment building, rehab the vacant units, and sell property once fully stabilized (with an alternate exit strategy of refinancing with a commercial lender).

The acquisition and construction will be financed by private money, the renovations performed by a GC, and the property listed and sold via a traditional agent.  

The deal has good Debt Coverage at 1.62 and it will cash flow at 19k/year.

The building is partially rented (2 units - 2 Bdrm and a Studio) with one 2-Bdrm ready to go.  The two 1-Bdrms and two studios will need new kitchens and bathrooms.

We are currently (as of 9/16) in the middle of renovation, but I will take it back to the beginning and highlight key areas and lessons learned. 

Check back!

[Kevin Branin]

All Occupancy has been certified by the borough for the units that are ready. We have COs on hand.  Also, we now have a for sale sign out front!

We continued this week on demo and framing. Had framing crews in on Labor day to frame ceiling in 6 and added additional framing in 2.

While demoing wall in 3 for opening, GC discovered gas pipe in wall.  It runs to the Unit above and is a relic from the past; it would have been used to supply gas lights. This will be left in place and opening will be truncated before this pipe. Wall may be structural, so GC will reinforce appropriately.

Also found a lead pipe in floor of 5. Will need to follow this pie back and replace.

Rough plumbing work in showers is complete (remember this for later! It will become an issue.). Showers have mixing valves and await electrician to be able to add full green board.

That "rough plumbing work" will become an issue in the future, but stay tuned for that!