Renovated 1950's Bungalow

[Alexandra L.]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $140,000
Cash invested: $60,000
Sale price: $226,000

1950's bungalow with an attention-to-detail contemporary renovation. Opened up the floor plan some between the kitchen and living room, and painted the entire interior white to make the home feel more spacious. Removing the awnings also helped by allowing so much more natural light into the space. Completely renovated the kitchen and bathroom, also with lighter finishes. Replaced a lot of paneling with drywall because at some point, it becomes too much texture. However, we left the paneling and painted it in the living room and hallway. New roof, new plumbing, all new fixtures throughout.

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

My background is interior design, and now I'm a real estate agent. Flipping seems like a natural fit for me!

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

We were referred to the seller by a family friend. He had another offer from a very large, well-known investor in the area. However, we tried to go the extra mile by helping remove some of the personal belongings and showing them that we wanted to treat this home with care. We weren't going to just slap some paint and flooring in it and call it a day. They ultimately decided to go with us, even though their other offer was probably better.

How did you finance this deal?

Commercial loan

How did you add value to the deal?

I completely handled the design, fixtures and finishes selections, and did some hands-on work as well.

What was the outcome?

We ended up investing a bit more into the home than we expected, and honestly, we thought we were going to lose money on this one. Luckily, we came out on top, but the profit was likely not worth the time and stress involved in the process. At the end of the day, we're proud of the product we sold and that we can provide a beautiful, quality home for a new homeowner, when there's such a lack of housing right now.

Lessons learned? Challenges?

1) Don't try to compete with big investors and end up overpaying for the house. 2) Double check your budget spreadsheets!

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

Myself - real estate agent / designer
Tyler Yeatman - mortgage loan officer, C&F Mortgage