South Kensington Shovel Ready Multi-Family Lot

[Kyle Piasecki]

Investment Info:

Small multi-family (2-4 units) other investment in Philadelphia.

Purchase price: $110,000
Cash invested: $30,000
Sale price: $230,000

Dilapidated garage covering two single family zoned lots, oddly shaped lots. Combined both lots into two lots with city and zoned for 3 unit multifamily project with 1 off street parking. One unit was two story 2bd 2ba with private rear yard access, and two 1bd 1ba units. I was originally going to build and hold this project. We decided to move from region and sold shovel ready project with full set of plans, engineered drawings, mechanical, structural, geotech, etc. Was not in hurry to sell so listed high and property sat. Then relisted with agent after I moved. One buyer fell through and forfeited security deposit. Property sat through winter. Jan 2019 sold due to being in Opportunity Zone.

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

Deal was off-market from known wholesaler who owned the property. Was unable to sell for over a year. Kept making offers. I knew the neighborhood, went to the zoning meetings often and was confident I could get multi-family approved.

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

From Wholesaler who was owner who I dealt with previously. Property was sitting kept making offers.

How did you finance this deal?

Cash

How did you add value to the deal?

Rezoning, reallocate lot lines, full plans that had city building permits approved. A true Shovel Ready Project".

What was the outcome?

Property was already a great deal and then Opportunity Zone designation made it even better. Sold for profit

Lessons learned? Challenges?

Because I originally planned on developing I overspent on drawings. Probably could of gotten sold for same price without full set of plans