Single-family residence fix & flip investment.
Purchase price: $68,500
Cash invested: $33,000
Sale price: $133,000
SFR in C+ neighborhood. Property sat on the market for a few months before we purchased. This was our first flip. Full remodel including new roof, siding repairs, drywall throughout, new flooring throughout, new kitchen and bath, paint inside and out, evaporative cooling, landscaping.
What made you interested in investing in this type of deal?
This was our first investment property. We really love the entire process of construction - especially taking a distressed property that is dragging down the neighborhood and turning it into a beautiful home. Chris' strength is in building, mine is in finance and design. So we make a good team!
How did you find this deal and how did you negotiate it?
MLS. Offered $7,000 below asking. Property had been on the market for approx 100 days, but pressure for investment properties was starting to increase in this area so we wanted to get this one bought.
How did you finance this deal?
Hard money (75%), our cash for down payment and repairs.
How did you add value to the deal?
Complete remodel. Updated kitchen, removed kitchen wall to create open floor plan and better flow. Added curb appeal with landscaping, poured concrete patio and added sliding glass door to backyard to add outdoor living space.
What was the outcome?
Remodel took approximately 5 months. Sold for $133,000 - slightly above asking price.
Lessons learned? Challenges?
We discovered YouTube is a great place to find time saving hacks for the DIYer, like how to easily remove a popcorn ceiling. Also realized that small items eat up time and profit, like hardware, caulking, etc. We thought we had a lot of tools when we started, but some of our profit will need to be invested in purchasing the right tools and buying a construction trailer.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, Jennifer Montgomery with Relevant Real Estate was our Realtor and Mike Neves with Access Mortgage was our Hard Money lender.
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