North Philly (Olney) Flip Investment

[Dan Powers]

Investment Info:

Single-family residence fix & flip investment in Philadelphia.

Purchase price: $123,000
Cash invested: $60,000
Sale price: $250,000

This property was located in the booming North Philly neighborhood of Olney. It was a standard 3/1.5 with 1346 sqft. While this property needed nearly everything done to it, the neighborhood is what drove the real return in this property. With comps settling at 235k + 240k with DOM under 10, my investor is shooting to push the market with this rehab aiming to list at 250k when all said and done.

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

What made my investor interested in this deal was the neighborhood, Olney is one of the hottest markets to get into in Philly, with the continuing issue of inventory being extremeley hard to find my investor jumped on the opportunity.

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

This deal was sourced through New Western Acquisitions, it was one of the 40-50 properties we release every month. It was sold as a 24 hr highest + best offer. Having missed out on other H+B properties I instructed my buyer to place a bid 24k over the starting bid to secure he was the winner.

How did you finance this deal?

It was purchased with cash.

How did you add value to the deal?

Value is going to be added to this property by doing a full rehab while still keeping some of the character pieces in this home. A full bathroom will be added in the finished basement, as well as a new kitchen, upstairs bath, updated electric, and adding a condenser to the existing forced-air system. My investor plans on refinishing the existing floors, fireplace, and staircase to highlight the character of the home.

What was the outcome?

The outcome is going to be a great modern rehabbed home while keeping the character pieces that will really make this property sell.

Lessons learned? Challenges?

The only challenge encountered on this project was deciding on what bid to place, my investor had missed out previously on other H+B properties we have sold while still bidding 10-15k over ask. When this property was released, we had a discussion if he wants to win this property he needed to place a bid at his purchase price of 123k.