Updated over 8 years ago on . Most recent reply
DelCo Seven Unit Flip
Ridley Park, PA Seven Unit Flip
Since I started buying property last year, I have wanted to get into doing fix and flips, buying and holding large MF, and getting involved with commercial lending. Then this deal popped up and had the potential to solve all three. Buy an apartment building, rehab the vacant units, and sell property once fully stabilized (with an alternate exit strategy of refinancing with a commercial lender).
The acquisition and construction will be financed by private money, the renovations performed by a GC, and the property listed and sold via a traditional agent.
The deal has good Debt Coverage at 1.62 and it will cash flow at 19k/year.
The building is partially rented (2 units - 2 Bdrm and a Studio) with one 2-Bdrm ready to go. The two 1-Bdrms and two studios will need new kitchens and bathrooms.
We are currently (as of 9/16) in the middle of renovation, but I will take it back to the beginning and highlight key areas and lessons learned.
Check back!