Stuebner Airline Flip

[Marcos Torres]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $75,000
Cash invested: $40,000
Sale price: $165,000

Purchased after it was out of probate for $75k with a $60k loan. Then proceeded to rehab for $40k. It was an old build with balloon framing, knob & tube electrical, lots of problems. Changed the ceiling in a bedroom that was flat and pooling water, electrical, pex plumbing, roof, central A/C added, new drywall in about 70% of the home and restructured the living space to give an open concept dining/living area as well as create a 3rd bedroom. Rented for 8 months then sold for $165k cash.

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

I went into analysis paralysis after trying to make sure I wouldn't fail. This deal kinda fell into my lap and I knew it was a great deal that I couldn't pass up.

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

My family was going through probate over an estate so I offered to pay for an appraisal and buy it for that price.

How did you finance this deal?

I used a traditional loan and put 20% down.

How did you add value to the deal?

I completely remodeled the home. New roof, A/C, water heater, flooring, drywall, electrical, water lines, the works.

What was the outcome?

The outcome is a great looking home that I was able to sell for a profit.

Lessons learned? Challenges?

Lesson learned - Use a general contractor to complete the entire rehab. I completed this one myself using sub-contractors on occasion as needed. It made the rehab more expensive and a much bigger headache to manage them.

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

I used my real estate agent to sell. Kim Roberts of Keller Williams in Houston.