Vacation home remodel, Value Add - Sale during 2009 crash
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $185,000
Cash invested: $235,000
Sale price: $658,000
Purchased an older ranch style home, remodeled and added an addition which value added 2 additional bedrooms, master bathroom and large office along with decks, stone entry and solar panel. First dealing with Tahoe regional agencies for approvals, permits and compliance with the Lake Tahoe basin regulations. Learned a great deal and decided it wasn't worth doing another. Lucky to sell when we did just as the market was crashing! Beautiful home
What made you interested in investing in this type of deal?
Location was key as well as the the fact that there are NO new builds in the Lake Tahoe basin and this was a well cared for, structurally sound older vacation home.
How did you find this deal and how did you negotiate it?
Was looking for a home to remodel with good bones, structurally sound. Worked with a great realtor to find it, who also sold it for us.
How did you finance this deal?
Traditional mortgage. We lived in it as a primary home at the same time.
How did you add value to the deal?
Doubled the square footage and added 3 bedrooms and a master bath, lots of extra amenities and craftsmanship.
What was the outcome?
Beautiful. Sold it just as the market was taking a downturn. Sold for about $80k less than anticipated.
Lessons learned? Challenges?
TRPA and other agencies that we needed to get approval of for most stages of the rehab caused delays in finishing. BMPs and a $1000 bear proof trash can were necessary but unknown expenses going in. Agency approvals were a real challenge and added significant costs.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Christy Morrison - Christy Morrison Real Estate, agent - Truckee, CA is the best!