Fix and Flip after purchasing at discount

[Scott McPherson]

Investment Info:

Single-family residence fix & flip investment in Kansas City.

Purchase price: $255,333
Cash invested: $14,000
Sale price: $332,500

Added a bathroom to finished basement. Built basement bedroom, installed egress window, and built walk in closet.

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

Was able to purchase at discount from seller with 300+ days on market and was willing to negotiate.

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

Home was in an area I desired. It was initially listed at a price that was a stretch. I made low offer at the beginning of the summer. By the end of the summer it was still available and had 300+ days on market at that point. I made a slightly more competitive offer which was accepted.

How did you finance this deal?

FHA

How did you add value to the deal?

Added bedroom and bathroom to finished basement to create a separate living area.

What was the outcome?

Profited $63,167

Lessons learned? Challenges?

Buy a home with high days on market has the seller wondering if it will ever sell. I believe that is why they were willing to sell at a discounted price. Then remedy the issues that was keeping other buyers from buying it.