Fishtown Flip Property

[Dan Powers]

Investment Info:

Single-family residence fix & flip investment in Philadelphia.

Purchase price: $155,000
Cash invested: $85,000
Sale price: $325,000

This property I would describe as a "grandma home" it's beautifully maintained, but everything is outdated and needs to go. My investor is going to gut this home and turn it into a nice, clean, and modern home. In a great location, this property sold extremely fast and is going to make my investor a good return in a hot pocket of Fishtown.

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

What made my investor interested in this property was the location. Being in such a great neighborhood, and a great block made this a no brainer for him to scoop up quickly.

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

This deal was a first come first serve deal, my investor had money put away in escrow with me so all I had to do was send him the contract and he was able to beat out many other competitors.

How did you finance this deal?

This deal was done using a hard money loan with Sherman Bridge lending. They financed 90% of the purchase price and 100% of rehab costs. My investor ended up bringing very little money to the closing table.

How did you add value to the deal?

Value is going to be added by completely transforming this property into a house any young professional would love to live in. Open floorplan, stainless steel appliances, the whole 9 yards.

What was the outcome?

Rehab has just begun, and will certainly take some time as this is no small project, but the return is going to be well worth the squeeze.

Lessons learned? Challenges?

One challenge I would recommend to any investors looking to get into this pocket is beware of center stairs. It is a complicated process to move the stairs to the side of the house. Some investors don't mind it, but the majority I have found don't want to deal with it. Just know what you're getting yourself into.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Dan Powers - New Western Acquisitions