!!!$200,000 PROFIT!!! on 10month flip
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $454,639
Cash invested: $146,722
Sale price: $808,000
$200K profit!!! we paid RE and closing fees out of this so true net $180k but still! HOME RUN. This house sat for 6 years. it was the worst house in a very nice neighborhood. We had to fix everything which is why our carry/rehab costs were $146K and the project took 10 months. We added High end finishes and every penny spend was recouped. This is a huge(3600sqft 5 bed 3 ba) project to self perform. This Flip put us debt free 100%. Wello worth the pain but I'm not willing to take on a flip of this size again unless every aspect is subbed out.
What made you interested in investing in this type of deal?
dilapidated lake house surrounded by beautiful homes. Comps showed an ARV of $675-725 Rehab estimate was $80-120k
How did you find this deal and how did you negotiate it?
This was on the NWMLS and a HUD home. we jsut offered the lowest acceptable price HUD would take
How did you finance this deal?
HARD MONEY and some personal
How did you add value to the deal?
We replaced the deck, floors, popcorn, doors, kitchen and baths, added curb appeal natural light and a waterfall.
What was the outcome?
We CRUSHED it! after blowing the high end of our budget($80-120k) by $28,000
Lessons learned? Challenges?
High end custom homes you can add add add and still see a return if done tastefully.
BEWARE of architectural committees. we were forced to put the most expensive roof on this house in order to not violate the CC&R's which were amended in 2010.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Sound Equity Lending
