A Flip that didn't go as planned. Lessons learned and why buying right is important

[Alan Asriants]

This project was a huge learning experience and taught me several valuable lessons.

The property was a 3-bedroom, 1-bath twin home in the Lower Merion School District—one of the most desirable areas in the Philadelphia Metro (Ardmore) and just minutes from Suburban Square. Homes in this area and this property type 

were selling for over $600k, and some new construction single-family homes were going for $2–3M. It was a prime spot for a flip or rental, and the spread looked excellent.

After purchase, we debated options: a full gut rehab, major additions, or a “go big or go home” approach. I’d never hired an architect before, so we aimed high. The third floor was basically a glorified attic, and we wanted to deliver a truly special product.

We came up with a great design, but one major obstacle remained—the attached neighbor. The neighboring twin, owned by the same seller, was vacant, abandoned, and a clear eyesore. We tried to purchase it to do both sides together, which would have been a home run, but got nowhere.

With the risk too high to invest heavily into just one side, we decided to sell the project instead—demo completed, with ambitious pricing, approved plans, and permits. Feedback was consistent: buyers didn’t like the neglected neighbor. We had one strong offer fall through (leaving us a small profit from their deposit), and another slightly lower that ultimately closed.

Because the property was purchased at the right price, low enough, we were able to absorb issues, market corrections, and complications—and still walk away with profit. Sometimes it’s best to rip the bandaid off sooner rather than later.

In the end, we made a solid return and walked away with crucial lessons:

1. When you buy a home, you buy your neighbor.

2. You never go broke making a profit.

3. Buying right gives you flexibility to survive surprises.

Challenging but rewarding, this deal reinforced the value of strategic thinking and patience in high-end markets.

[Andy Sabisch]

As the old saying goes, "You make your money on the buy, not the sell"

At least you got out mostly intact.  The problem with a double block is that unless you own the entire building you are at the whims of the other side and if they do not want to maintain it, your side will never be worth what it can be.