Flip in an Over 55 Community
Investment Info:
Single-family residence fix & flip investment in Manchester.
Purchase price: $27,500
Cash invested: $75,000
Sale price: $154,000
We bought this 1200 sq ft home in an over 55 community and it was completely gutted to the studs. We put all new systems in the house, opened up the layout and added some upgrades to get the highest sales price in the community.
What made you interested in investing in this type of deal?
I had been looking for a house to flip for a while and I came across this. We had enough money to pay for the purchase and renovations without using a loan.
How did you find this deal and how did you negotiate it?
I found this from a tax lien investor and presented it to my investor clients who said it was too far for them so I decided to do it myself. I negotiated the price because it needed so much work. I also had my lawyer put provisions into the contract that said we wouldn't pay for outstanding utility bills etc which was really helpful because a few days before closing they tried to get us to pay for them.
How did you finance this deal?
It was a partnership between myself, my father, and a contractor i had worked with previously. Because this was an over 55 community they required us to have 1 owner be over 55.
How did you add value to the deal?
We opened the layout and rearranged the closets for more storage, added a half bath in the laundry room, added all new systems, insulation etc, and were able to put a few extras in like granite countertops and tile floor in the bathroom.
What was the outcome?
We had an offer right away that fell through and then another offer at full price shortly after.
Lessons learned? Challenges?
This was a very in depth flip because it was gutted to the studs when we bought it. I learned so much about the home construction process and the order things happen in because we basically rebuilt the entire interior.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I was the buying and listing agent and we worked with a general contractor and multiple subcontractors.
