Buy, hold, & fix & flip. Increased profit in all steps

[Alex F chang]

Investment Info:

Single-family residence other investment in Casa Grande.

Purchase price: $120,000
Cash invested: $30,000
Sale price: $260,000

Selling price was $180k at time and could only attract cash offers (maybe conventional but definitely not FHA borrowers due to condition). Comparable told us we could sell for $240k after remodel. I figured out the cost & scope of work needed ($~30k) and got a bid for $20k.
This would net us an additional $40k in gross profit and beyond tangible results, this also changes our position favorably since we are now open to more buyers and have a stronger hand. Listed price of $240k and got $260k FHA

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

Bought this house at a $10k bargain at the time and intentions were to buy & hold

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

MLS and reached out to agent

How did you finance this deal?

Conventional loan

How did you add value to the deal?

Remodel

What was the outcome?

Increase resale value by 33% (from $180k to $240k). In addition, reduced remodel cost by 33% through bargaining ($30k to $20k), and increased another 8% on top of comparable sales price through strategic sales implementation (Asking price of $240k and got us an offer for $260k - FHA buyer)

Lessons learned? Challenges?

Very happy with this deal.

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

I was the real estate agent and active partner in this deal