All Forum Posts by: Ryan McLaughlin

$70 was actual cash invested. BP doesn't offer a field for project budget which was actually more like $130. Of course, you have to factor closing and holding costs which were considerable on this timeline.

Everything was sheet rocked. A good amount of plumbing had been replaced and I didn't need to rough anything. The bones were there. Just a lot of exterior and remodeling. Thanks!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $220,000
Cash invested: $70,000
Sale price: $460,000

205 Hermit St is a project we wrapped and sold in early 2024. Our initial plan was to hold it as a MTR (medium term rental) but decided to flip instead in order to fund the purchase of our new primary residence. It took 9 months from front to back with was too much time, but the wait was worth it.

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

This was our first heavy project without a more knowledgeable GC as our partner. This one didn't require anything outside our wheelhouse, ie. structural. It was already rewired and had a special footprint/ layout and great location. We thought we could handle it so we jumped in.

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

It was listed on the MLS and was right down the road from us. As Realtors, we negotiated a great deal in a competitive situation on our own.

How did you finance this deal?

Hard money and I was able to acquire $90K in credit lines from 0% APR credit cards. Half way through thought, we were over budget and went back to our hard money lender to close out the cards and finish the project.

How did you add value to the deal?

We added a mini split system, new floors throughout, rebuilt the deck, added windows, repaired waste lines, roof, siding, stucco, cleaned up the basement and remodeled the kitchen and bathrooms. Jackie's design is what made the property special though. The carefully curated aesthetics are what I'm most proud of - and helped us bring a great return.

What was the outcome?

The flip was a big success despite going significantly over budget. Once you get started and see a projects potential, you don't want to skimp. There was room on the deal to make a few mistakes and we certainly did along the way!

Lessons learned? Challenges?

We finally found our go-to contractor after falling out with our original, who underbid the project, become flakey and eventually stopped showing up. Finding the right people to work with is 80% of the battle.

I had my hands on way too much as usual, and as always, the amount I saved in doing so was probably negligible when considering the opportunity it cost my in my job as a Realtor. I can't help it though. Some parts of the job you just want done a certain way so you do it yourself.

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

We worked with a great hard money lender who we plan to work with again. I'll be happy to share their contact, just drop me a line. 

Off-market, legal triplex on the booming border of Strawberry Mansion and Brewerytown. Three 1-bed / 1-bath apartments – fully occupied and turnkey with tidy tenants in place – all of whom are current on rent. Separately metered for gas and electricity, newer panels, wiring, hot water heaters and bulletproof Crown boilers. Current rent roll - $2,610/ month.

Upgrade the units with kitchens, bathrooms and floors as they become vacant to garner rents of $1,200 each or $3,600 / month.

Click for more info and a tour. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $67,000
Cash invested: $71,000
Sale price: $184,000

I had the pleasure of representing Doug on the purchase and the sale of his first flip in SW Philly and I couldn’t be more excited for all of his success here. Doug came to me fresh off of months of studying and saving and was ready to make his foray into real estate. It wasn't long before we found a great opportunity and Doug went to work.

How did you finance this deal?

Hard money.

What was the outcome?

I tell all my clients that you may lose or break even on your first deal, especially with little to no experience but Doug came out in the black and learned a TON along the way.

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

I was happy to help Doug on the purchase and sale at Reedland. Having a Realtor in your corner who understands the market, how to finance a project, the rehab process itself and how to estimate rehab costs is paramount to your success. I'm happy to have helped Doug along the way and I'd love to do the same for others in the BP community.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $67,000
Cash invested: $71,000
Sale price: $184,000

This is a client success story. Not my own, but I'm proud of the guy and I wanted to share.

I had the pleasure of representing Doug on the purchase and the sale of his first flip in SW Philly and I couldn’t be more excited for all of his success here. Doug came to me fresh off of months of studying and saving and was ready to make his foray into real estate. It wasn't long before we found a great opportunity and Doug went to work.

Mike Tyson said that everyone has a plan until they get punched in the mouth. Well, rehabbing a house is a punch in the face for sure, and Doug certainly took his lumps. It’s all about how you get back up though, and Doug is still standing tall with his first W and I think he even made a couple bucks along the way. Having a Realtor in your corner who understands the market, how to finance a project, the rehab process itself and how to estimate rehab costs is paramount to your success. I'm happy to have helped Doug along the way and I'd love to do the same for others in the BP community.

If you’re thinking of investing in real estate, drop me a message and let’s get to work. Congrats, Doug!

OFF MARKET, but not for long. Jump on this before we list on the MLS.

6 units across two structures, all recently renovated and separately metered. Situated in a prime location, with easy access to SEPTA, regional rail, and major highways (422, 202, I76 and the Turnpike).

Two units have been newly renovated are vacant are primed for Section 8 rents as high as $1,524 and $1,836. These 2 units are conservatively listed on the current rent roll as $1,250 and $1,500. Norristown Section 8 ceilings are quite high. The other 4 occupied units are NOT Section 8 and have conventional renters. All units are well-kept by great tenants, all of whom are up to current on rent. There are no delinquencies here.

There are no photographs for units 2F or 5 in this set but I have links for recent rental listing photos. Regardless, these units have similar features to the other units pictured. 3D tour available - reach out for the link and pro forma

Buyers agent compensation: 2.5%.

Investment Info:

Single-family residence fix & flip investment in Philadelphia.

Purchase price: $167,000
Cash invested: $59,000
Sale price: $450,000

This beauty was a full gut and it really exceeded our expectations. Originally a beat up 3/1 we converted it to a 4 bed, 3.5 bath. We partnered with our GC 50/50, utilizing a HELOC on our primary and hard money. 12 months to completion was a little long, but good things are worth waiting for.

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

We were seeking a flip to make up for lost income as my wife was out on maternity with our second baby girl.

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

House was in disrepair. As tenants were moving out I asked neighbors for the owners contact. We negotiated directly.

How did you finance this deal?

Hard money. We split all cash expenses (down payment, closing costs, construction) with out GC/ partner.

How did you add value to the deal?

Sourced the deal, contributed half of the cash, handled the sale.

What was the outcome?

The house is absolutely beautiful. We had multiple offers in our first weekend and accepted one $10K over ask.

Lessons learned? Challenges?

The project was supposed to take 5 months and it took 12. Too much time and the construction scope was too large. Smaller and faster next time.

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

I'm a realtor and I handled acquisition and the sale. I recommend Direct Mortgage as a hard money lender.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $172,000
Cash invested: $57,000

Just completed this old smoker's house. I know you've heard of popcorn ceilings but have you heard of popcorn WALLS?! Let's just say I probably got mesothelioma from this one. This one took way to long and I tried to do too much myself. But we are up and running - now leasing to traveling nurses, fully furnished, w/ all utilities included for $2750/ mo. PITI: $1061! it's not worth $265K :)

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

We've had a lot of success by house hacking an apartment into our current primary in the Manayunk section of Philadelphia. I wanted to replicate on a slightly larger scale. This project fit the bill.

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

This deal was presented to me by a neighbor who knows I work in real estate.

How did you finance this deal?

Conventional financing. We considered BRRRRing it but the low PITI was too attractive and it seemed like a great place to park some cash.

How did you add value to the deal?

Full cosmetic overhaul. This was badly smoke damaged by a heavy smoker that never opened a window in 10 years. Hardcore elbow grease. Shellack primer, and cigarette tar in my eyes for weeks. Yuck! But it paid off. $15K in rehab costs probably added $70 in equity.

What was the outcome?

We have taken our first 3 reservations - 30 day minimums at $2750/ month. PITI here is $1060. Even with utilities, this is a cashflow monster in a well established Philadelphia neighborhood.

Lessons learned? Challenges?

I took on too much of the work myself here and took my eye off of my business as a Realtor. The money I saved in labor was dwarfed by the time I lost in the trenches by not selling houses. I underestimated the project and learned the hard way... again.

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

This one was all me :)

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $167,000
Cash invested: $49,000

This 3 bed, 1 bath, 1450 sqft rowhome will soon be a 4 bed, 3.5 bath with 2100 sqft - by adding livable space to the basement. We should be on the market by the end of summer and we hope to list for $425K. We anticipate having $49K tied up in the project - mostly funded by our new HELOC.

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

I sourced the property off market. The house was visibly in need of repairs and when the tenants were moving out I sought out the owner. Tracking him down through a neighbor, I was able to work out a fair price for the house and we closed right after Christmas.

How did you finance this deal?

We are funding through a hard money lender, Direct Mortgage here in Philly who I highly recommend. We are putting up half of the capital and our partner will match. We put up 20% of the purchase price and 2.5 points on the sum of the loan. We expect to have $45K tied up here over the course of the project.

How did you add value to the deal?

I sourced and negotiated the deal. Initially, Jackie and I planned to take on this project by ourselves with a minimum scope of work: rewire, central air, kitchen, bath and floors. I brought our now partner through - an experienced GC and builder, to get his eye on the project and he took a liking to its potential. He offered to partner with us as GC, expand the scope, thus upping the ARV and we couldn't say no. We are 50/50 partners in and out.

Lessons learned? Challenges?

My favorite thing about this project is being hands off in the construction. Aside from some accounting, design input and logistical coordination we are not involved in the daily operation. This allows us to focus on our business as Realtors. When I try to do too many things at once, I don't do any of them well. I'm looking forward to watching and learning from our GC/ parter as I have in the past, bringing more construction knowledge into my orbit, making me a better Realtor & investor.

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

Direct Mortgage has been great. My wife and I are agents. Reach out any time!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $167,000
Cash invested: $49,000

This is a SFH flip I'm taking on with my wife and a parter in Manayunk, Philadelphia. I sourced the property off market. The house was visibly in need of repairs and when the tenants were moving out I sought out the owner. Tracking him down through a neighbor, I was able to work out a fair price for the house and we closed right after Christmas. Initially, Jackie and I planned to take on this project by ourselves with a minimum scope of work: rewire, central air, kitchen, bath and floors. I brought our now partner through - an experienced GC and builder, to get his eye on the project and he took a liking to its potential. He offered to partner with us as GC, expand the scope, thus upping the ARV and we couldn't say no. We are 50/50 partners in and out.

We are funding through a hard money lender, Direct Mortgage here in Philly who I highly recommend. This 3 bed, 1 bath, 1450 sqft rowhome will soon be a 4 bed, 3.5 bath with 2100 sqft - by adding livable space to the basement. We should be on the market by the end of summer and we hope to list for $425K. We anticipate having $49K tied up in the project - mostly funded by our new HELOC.

My favorite thing about this project is being hands off in the construction. We are assisting with accounting, design input and logistical coordination when necessary but are not involved in the day to day operation. This allows us to focus on our business as Realtors. I've learned the hard way that when I try to do too many things at once, I don't do any of them well. I'm looking forward to watching and learning from our GC/ parter as I have in the past, bringing more construction knowledge into my orbit which makes me a better Realtor and investor.