Philly Rehab and Flip

[Jamal Wells]

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $85,000
Cash invested: $28,000
Sale price: $195,000

Bought a vacant house and converted it into student co-living space with 5 rental room units near Temple U. Also used the space for Airbnb. Used my knowledge as a licensed architect to optimize value add for better profit. Used hard money for the deal.

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

Saw it done by others on HG TV. Father was real estate agent growing up and I have my architect's license to add value to deals.

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

Found it with research on area development trends and suggestions from an experienced real estate agent.

How did you finance this deal?

Hard money lender.

How did you add value to the deal?

My knowledge as a licensed architect helped add a lot of value to the renovation and finished product, causing the after repair value to increase due to appeal.

What was the outcome?

Sold property for $110,000 more than I bought it for, but only put $28K into the renovation. Nice profit.

Lessons learned? Challenges?

Management can be a challenge especially if you are not residing in the same city or area as the property.