Single-family residence fix & flip investment in Concord.
Purchase price: $410,000
Cash invested: $110,000
Sale price: $650,000
Purchased an 886 SF 2/1 in an up-and-coming neighborhood of Concord, CA. I pulled an owner-builder permit and added a master suite, laundry room, walk-in-pantry, and a large detached 2-car garage. The finished product was a gorgeous and completely renovated 1337 SF 3/2.
What made you interested in investing in this type of deal?
The barrier to entry is high in Bay Area Real Estate--I knew a distressed property would be my only way in. I was interested in this particular home because it was THE cheapest single family home in the entire East Bay at the time.
How did you find this deal and how did you negotiate it?
I found this deal by religiously checking Realtor/Zillow/Redfin hourly for months. As soon as it popped up I called my realtor. I submitted an offer one day later. I
How did you finance this deal?
How did you add value to the deal?
Adding an additional bedroom and bathroom was the major value-adder.
What was the outcome?
I walked away with more money than I had invested and a TON of knowledge about residential construction.
Lessons learned? Challenges?
Lessons learned: do not overspend on finishes! Do more research on the specs of comps. Family and friends teased me by saying I "built a million dollar home in a five hundred thousand dollar neighborhood." They were absolutely right. I got lucky on this one, but never again would I pick more expensive finishes than necessary.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I would highly recommend Bill Shewry at Land Home Financial for any financing needs.
Here are some more photos for those interested:
Great work Kyle. Adding the extra sqft on this beautiful Bay Area investment was a homerun. Really like the bathroom nice touch real updates to the trends. I bet other investors are crying now that they didn’t see your vision. I mean all that space in the back of the house was just waiting for an addition. How long did it take you to obtain the builder permit? Thanks for all the pics.
Kyle, come out to Marin and build two million dollar homes in two million dollar neighborhoods!
@Santiago Marquez Thank you, Santiago! I already knew an architect, so I had him draw me a set of plans for the addition/garage which took about 2 weeks of back-and-forth. At that point I submitted the plans to the City of Concord, and they responded with comments about a week later. My architect and I made a few revisions and resubmitted. A week later the City of Concord red-lined a few things and stamped/approved them and gave me my permit. Start to finish took about 4-5 weeks to get the permit.
@Darius Ogloza Right!?
Nice job Kyle!!
@Dmitriy Fomichenko Thank you!
@Kyle Schuck Congratulations! Great find! Who did the construction? Hey! We're in the same county. :) Also, I visited Marin County last week—a lot of older homes just begging for help from a REI!
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