Just got our hands on a 3 bed 2 bath home with 1650 SqFt in a good family area, centrally located in Tucson.
How We Got It
This property was listed on the MLS and had fallen out of contract 3 times. The bank that owned it had done multiple price drops. They did another 25k price drop after a potential buyer backed out and we jumped on it.
The property went under contract at $65,000. However, during inspection, we asked for a $5,000 credit, assuming that the bank would not want to deal with the headache of the property falling out of contract again. The minimal credit did not phase them, and we closed the deal.
Our plan for this home is to add roughly 300 SqFt, bringing the total to around 1950 SqFt. We are going to convert it into a 4 bed 2 bath and completely redo the floor plan - the current layout is chopped up and has a horrible flow. The full remodel will include: new flooring, kitchen, bath, appliances, paint, and roof. The cost should come out to about $65,000.
- Purchase Price: $60,000
- Remodel Cost: $65,000
- Carry Time: 5 months (75 days for remodel, 30 days to list, 30 days to close)
- Finished Product: 4 bed, 2 baths - approx. 1,950 SqFt.
- ARV: $170,000
- Actual Sale Price: $158,100 (170,000 - 11,900 closing costs [7%])
- Profit: $33,100
- Cap Rate: 26.5% (33,100 / 125,000)
- Yearly Return: 63.1% (26.5 x [12mo/5mo])
Follow this post for regular updates and to see the finished home!
Deal Diary for Dummies: Wholesaling, Flips & Rentals #1:
Another awesome find! Can't wait to see how this one turns out!
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