Updated over 1 year ago on .
Point Breeze High End Flip
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $180,000
Cash invested: $130,000
Sale price: $430,000
My investor just closed on this property in Point Breeze, right off 22nd and Washington this pocket is hot with and new construction and rehabs. My investor plans on making this a luxury 2/2.5. Traditionally more bedrooms = more value, in south Philly the 3rd bedroom can often be super small and it makes more sense to add additional sqft to the master suite and therefore 2 beds trade at similar prices to 3 beds. Expecting a sale price north of 400k and a turn around time of 2-3 months!
What made you interested in investing in this type of deal?
What made my investor interested in this deal was how far north in Point Breeze this property was. Traditionally you find a lot of inventory south of Reed st that you can buy for 150-165k and sell for 350-380k. Being just off Washington Ave offered a higher sale value compared to other homes in the pocket. On top of that being already in shell condition helped the rehab budget by cutting down on demo work.
How did you find this deal and how did you negotiate it?
This was sold at a first come first serve basis and my investor bought it sight unseen. Sourced through New Western.
How did you finance this deal?
This deal was purchased with cash.
How did you add value to the deal?
Value is being added by completely gutting the house and adding all new mechanicals (HVAC, plumbing, electric) as well as cosmetics (kitchens, baths, paint, floors) He is going to transform this into a luxury 2/2.5 with a high end master suite with walk in closet and master bath
What was the outcome?
The outcome is going to be a fantastic freshly rehabbed property in a pocket that is not overly saturated with inventory.
Lessons learned? Challenges?
Only challenge we had was needing to extend 1 week to clear up a title issue.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Dan Powers - New Western
