Hoarder House Fix & Flip

[Tim Callahan]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $80,000
Cash invested: $38,000
Sale price: $250,000

Hoarder House! Off market property, bought directly from seller. Seller was very happy with us helping him out of a chaotic situation. House was packed floor to ceiling with stuff. We loaded seven 30 yard dumpsters, trashed out the house. We painted, added laminate flooring, replaced all windows, replaced toilet, vanity, kitchen sink & countertop, cleaned up basement. We put the house on the market and had 9 offers. We took the best offer and closed with no issues.

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

It was off market, seller was able to move on with his life for what we offered. We liked transforming junk houses.

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

Heard the deal through the grapevine. We drove to the house and talked to the seller directly. He was very open and friendly and welcomed us to take a look.

How did you finance this deal?

Partner's cash and his home equity line.

How did you add value to the deal?

Trashed it out, painted, new windows, new roof, repaired decks, new floors, new countertop & sink in kitchen, new toilet & vanity in bathroom, general cleanup and lots of paint.

Lessons learned? Challenges?

Next time we will try to hire more contractors, we do a lot of work ourselves which is difficult with full time jobs and families.

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

Yes, we sold with our rock star agent Chuck Grover.