2nd Long Distance Flip

[Philip Coiro]

Investment Info:

Single-family residence fix & flip investment in Pittsburgh.

Purchase price: $115,000
Cash invested: $145,000
Sale price: $380,000

1700 sf house, full gut renovation. We added a bathroom and walk through closet making the house a 3b 2.5b. Renovation was completed mostly by myself with a few helpers, I hired out plumbing, electrical, vac, drywall, siding & roof. This took us 12 weeks to complete.

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

As I've gotten in real estate flipping we have preferred to do full gut jobs, this takes away a lot of surprises that could potentially come up and I feel the margins are better.

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

This was a stale listing on the MLS my local agent lead me towards. This kind of renovation as a flip was the first of it's kind for the area and there was nothing that sold for over 180k in this part of town. My agent knowing the street, the view and other work being done on the street by homeowners really felt strongly about this working and I trusted her from having done another deal the year prior together. We crushed a sales record for this town!

How did you finance this deal?

Cash. Personal savings and a HELOC on my primary residence.

How did you add value to the deal?

I did everything lol

What was the outcome?

The house sold netting us a profit of around $80,000

Lessons learned? Challenges?

I learned that I can't do all the physical work myself moving forward if I want to grow. I also learned that I need to leverage money in order to grow. Self financing is awesome for many reasons but I don't have enough capital on my own to do 2 deals at the same time. Moving forward I will borrow funds to enable us to do more projects.

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

I'm happy to share any contractors I've used in Pittsburgh, found some awesome guys!