Flip in San Fernando, CA by Will Barnard

[Will Barnard]

Investment Info:

Single-family residence fix & flip investment in San Fernando.

Purchase price: $500,000
Cash invested: $130,000
Sale price: $800,000

Purchased off market for approximately $50k-$70K below fair market value. Gutted interior and reformatted floor plan to include true master with ensuite bath, new hall bath location, added interior laundry and dry bar plus new HVAC, new roof, new electrical panel and whole house rewire, new kitchen, flooring, paint, landscaping, etc. Sold with multiple over ask price offers inside of 1 week. Final result was an ~$85k profit for a 6 month flip. A private investor loan was used for the acquisition plus small amount of rehab, balance of the cash came from me. The most difficult part about these types of flips is dealing with the city for permits and inspections. This particular one was NOT with LA building and safety (thank goodness) so it went much faster and smoother, hence getting in and out in just under 6 months instead of probably 9+.
Link to property listing: https://www.zillow.com/homes/1219-Mountain-View-St-San-Fernando,-CA-91340_rb/20077492_zpid/

What made you interested in investing in this type of deal?

Been doing this for years, this was just another.

How did you find this deal and how did you negotiate it?

Agent contact I have know for decades, purchased prior to MLS listing.

How did you finance this deal?

Private Money from my private money network, plus my cash.

How did you add value to the deal?

Value was added at purchase by getting it for under market value. Then I added more value through the remodel by gutting it to the studs (almost) and turning it from very old and nasty to a modern masterpiece starter home.

What was the outcome?

Ended up spending about $25K over budget (I edited the budget after purchase) and received $51k over my original best expectation. Completed the deal from close of escrow to close of escrow in under 6 months.

Lessons learned? Challenges?

Challenges are always finding the deal and dealing with the city for permits and inspections. This city has its own and was much easier to work with than LADBS (Los Angeles department of building & Safety).

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with an agent I have known since I was 18 years old.