My wife and I are real estate investors in Sioux Falls, SD. My is also a realtor licensed in SD. Here is the story and some before and after pictures of our 2nd non-owner occupied flip. The first one was several years ago and unfortunately we do not have pictures. We bought this house for cash as a foreclosure due to it's very desirable location. Even though we were not sure what would be best, tear down the house and resell the lot or rehab the house. In the end we decided to rehab. We did all the work that we legally could on this one. Only subbed out the plumbing, electrical and HVAC which has to be done by licensed contractor here unless you are an owner occupant, then you can do it all yourself. Even though we enjoy it, we do not plan on continuing to do all the work ourselves for much longer since that model does not scale. The house now has new plumbing, new and updated electrical and new furnace with central air conditioning. We have a signed purchase agreement from a cash buyer for this one but closing will not be until May since it is currently rented until then. I don't want to list all the numbers until after closing. For now I will just say that we made a 22% annualized return on our total cash investment.
Before: (We had already started taking out some of the 20+ trees we had to remove that were all volunteers growing in bad locations all over the lot or were dead. Hated to do it but it was necessary.)
Before: (Sorry about the image being rotated 90°. For some reason it rotates portrait images to landscape when they are uploaded)
After: (Same kitchen taken from a different angle looking out through the widened opening to the living room)
I don't really have before shots of the the rest of the place so here are several more after shots.
2nd bedroom. In here I rebuilt the stairs to the 1/2 story upper floor. I made them an "L" shape since the old ones were very narrow and steep and when you got to the top you had to duck or you'd plant your face into the sloped part of the ceiling.
Half story upper floor (attic)
Basement (Added an egress window for future legal occupied space. Decided not to finish the basement ourselves but it was an added selling point for buyers)
Sorry about the rotation again.
If you have any questions please don't hesitate to ask. We learned a lot doing the project and enjoy sharing what we know.
Thanks for checking out our story and happy investing!
Looks really good! i like the colors you used on the main floor. doing alot of the work in the beginning is always good- allows you to learn the business by getting your hands dirty so you can be a better and savvy business man/woman later, in addition to the cost savings now.
Congratulations! Job well done!
Very Cool! How did you find this foreclosure?
@Des Shei Hi Drew, We got lucky and found this one on the MLS. We were working with a good friend who is also a real estate agent. He saw the potential right away. He's the broker my wife works with now. He showed us the property once and we walked away because we didn't think we wanted to take on that much work. I think everyone else was afraid of it due to the amount of work needed too. The lot is huge and needed a ton of work, including regrading a significant portion to slope away from the house not to mention all the trees that needed to be removed. Also the house was REALLY in rough shape. It was a tough decision as to whether or not to knock it down or rehab. It was that far gone. We finally decided since the bones of the structure were sound and you can't get a much better location in Sioux Falls (McKennan Park area), we would do the rehab.
great job @Mike Romanowski !
Mike, I stumbled on this site today. Found your post and thought I'd take you up on your offer to answer questions about flipping in SF. My wife and I are about to start our first so the apprehension is enormous and any free advice is golden. Would love to pick your brain but not sure how to message you as, again, I'm brand new to this forum. -Mark
Mike, that house looks amazing! Nice work.
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