South Kensington Lot flip

[Kyle Piasecki]

Investment Info:

Single-family residence other investment in Philadelphia.

Purchase price: $127,000
Cash invested: $10,000
Sale price: $200,000

Purchased two contiguous vacant lots. Reallocation of lot lines and schematic drawings for zoning approvals with City of Philadelphia. Geotechnical survey. Sold project "shovel ready"

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

Little liability required, neighborhood was appreciating. Noticed that the property was not selling for years despite corner lot in great neighborhood simply because one lot as it was currently allocated could not support a single family home.

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

Lived in the neighbrohood. Watched the property sit for over a year on market. Made several offers over the course of a year. Sellers lived across the street.

How did you finance this deal?

Cash

How did you add value to the deal?

Made two abnormal lots in size and shape into two uniform lots approved for two idential single family homes with slightly different entry orientation.

What was the outcome?

Sold to developer who has since redeveloped and sold

Lessons learned? Challenges?

Did not need the geotechnical report. Could of saved $3-$5k since I was not actually building the project.