Slam dunk deal on a townhome in Montrose!

[Shahan Siddiqi]

Investment Info:

Townhouse fix & flip investment.

Purchase price: $550,000
Cash invested: $580,000
Sale price: $727,000

Hey there, I don't typically share my deals publicly but this was sort of a slam dunk deal that I thought I'd share to help new investors understand the true potential of investing in real estate. (Sourced the property from realtor relations for those wondering.)

So, me and my partner purchased this townhome in the Montrose neighborhood of Houston. Here's a bit of information about the home itself.

It is a 4 bed, 4.5 bath. Just under 3000sqft and built in 2014. This was a foreclosure that a realtor of mine purchased herself and was looking to sell off because there were 8 other townhomes in this complex that she purchased as well and I'm guessing she couldn't afford to rehab all of them so she sold it as-is and took her profits. Thankfully, I did not have to go through the foreclosure process (it can be very lengthy) as she was the one who bought it from the bank and resold one of the 9 to us.

My purchase price was $550,000, which me and my partner purchased cash. Our rehab was very light and mostly cosmetic and ended up totaling up at about $30,000. We were all in at around $580,000 with an ARV between the ranges of 715K - 740K. Ended up selling it at $727,000 to a bachelor moving into town from out of state. It was just under an 80% deal, which I will take ALL DAY in this current Houston market. Especially in Montrose! Ended up netting just over 120K on this single property! (Before taxes of course.)

Now, obviously deals like this don't come across us everyday (or even every year for that matter). However, when they do you've got to act quick and pounce on the opportunity. And, so we did.

Now, I've only got one question for the rest of you's. Where else can you find that sort of spread on a single transaction outside of Real Estate? That is why I love this game!

I haven't got any pictures of the final product but will definitely upload before and after's when I get a chance so you guys could have a better idea. Thanks for reading!

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

Honestly, it was a no brainer. The numbers made all sorts of sense. You wouldn't need to have any sort of experience in Real Estate to know $100k net in a month and a half is a good investment.

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

Sourced from a realtor, I've been in contact with for a few years.

How did you finance this deal?

Cash Purchase.

How did you add value to the deal?

Property did not need much. Pretty much paint and some dry wall sheeting, also changed some fixtures. Nothing major.

What was the outcome?

Profit of just under $125k.