2nd Remodel- Washington State

[Justin Rush]

Investment Info:

Single-family residence fix & flip investment in Gig Harbor.

Purchase price: $836,000
Cash invested: $50,000
Sale price: $950,000

Home in Gig Harbor, Washington. This was a full remodel. We replaced every light in the house, fixed pool, painted every square inch inside and out, and re-did driveway. Over 9 months, we bought the house for $836,000, put $100,000 down, and invested another $50,000. We sold the house in November 2022 for $950,000. The ROI of this 9 month remodel pre-tax was 36%; post-tax ROI was 22.4%.

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

The largest reason for this deal, was the location (Gig Harbor). This area is one of the most sought out areas within the entire state, and has a barrier of entry (the bridge tolls keeps alot of crime over in Tacoma).

Lessons learned? Challenges?

The largest lesson learned, has to be: Expect the unexpected. We budgeted for $125,000 all in for the remodel; however, immediately after moving in, we spent $35,000 on unforeseen issues (Garage was built over the gas line, Pool had to be replaced after first use, electrical was faulty). Next round, we will ensure to add an additional 25% to our estimates.