Difficult Fix & Flip that went to my rental portfolio
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $410,000
Cash invested: $50,000
I bought this house as a flip but kept it as a rental.
It needed lots of rehab. There were illegal additions in the back of the unit. I got plans and a permit to legally add it to the sqft.
Original setup: 700 sqft, one bed, one bath.
New setup: 1039 sqft, three beds, three baths.
List of modifications.
New everything: fire sprinklers, plumbing, sewer lines (to city main), electrical, kitchen, bathrooms, flooring, driveway with four cars parking spaces (it did not have one, can you believe it?), and foundations.
What made you interested in investing in this type of deal?
Lots of potential and upside
How did you find this deal and how did you negotiate it?
From the network of fellow real estate agents. It was an off-market deal.
How did you finance this deal?
Hard Money Loan
How did you add value to the deal?
Heavy rehab. Legalizing illegal additions with the least amount of demo.
What was the outcome?
Bought at $410k. Appraisal in 2024 showed $650k for a refi. I know for sure if I sell, it will bring me $720k sale price.
Lessons learned? Challenges?
Hire the right architect to avoid plan delays.