Rancher in Phoenix AZ

[Denise Andresen]

Investment Info:

Single-family residence fix & flip investment in Phoenix.

Purchase price: $135,000
Cash invested: $20,000
Sale price: $298,000

Awesome investment rancher in a very nice part of town, New schools and a lot of new development in the area. The price was right and there was so much potential, we couldn't pass it up. In the end the house sold the first week on the market.

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

Great potential 3 bed, 3 ba home with unfinished basement, for a total living space of 1600 sf. Great location. House needed to be updated.

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

Realtor. It was on the market for $145,000, but the appraisal came in at $135,000. We paid the appraisal price.

How did you finance this deal?

Private investor put in 50% down for 50-50 on profits after sale. Investor financed the balance with a conventional loan in case work took longer than necessary.

How did you add value to the deal?

We did all the work and purchased all the material. After basic updates to existing baths and kitchen, we proceeded to finish the basement. Upgraded the basement bathroom into a second Master Bath, with jacuzzi tub and hidden walk in closet. Added a second Master Bedroom 16'x18' with double entry doors. Also, two additional bedrooms, laundry room and family/game room. The square footage was increased to 3200sf. Finished as a 6 bed, 3 bath, 9 room rancher on a cul-de-sac with inground pool.

What was the outcome?

Great return on the investment

Lessons learned? Challenges?

Know your investors and make sure everyone knows their rights and responsibilties.

[Denise Andresen]

Thank you Alan, it was a great project. I had a really good team, including my husband and myself.

 Tanya, all the egress windows were in place. We just had to add escape ladders to each room, which was easy. Because we only had to invest in materials, we saved a lot of money on labor. My husband, sister and I did all the work, except the electrical from the main which was done by a friend who was a contractor. I love houses with basements. They have great potential for huge profits.