Profitable Cosmetic Flip in 2022

[Greg W.]

Investment Info:

Single-family residence fix & flip investment in Sterling Heights.

Purchase price: $227,500
Cash invested: $19,000
Sale price: $318,000

Cosmetic Flip (1-2) in 90 days

Kitchen Cabinet Paint (Grain filler + Shellac + BM Advance)
Kitchen/Entry flooring
Bathroom 1 cosmetic (flooring, paint, and mirrors)
Bathroom 2 full (flooring, paint, and fixtures)
Every room paint
Basement finishing (black ceiling, walls, and painted concrete floor)

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

Right season: winter in a colder location = lower prices
Right house: kitchen cabinets savable, bathroom fixtures savable, good layout

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

Called the listing RE.

How did you finance this deal?

Cash (all offers were cash)

How did you add value to the deal?

ARV*80%-Repairs/Contingency

What was the outcome?

ARV = slightly above
Purchase = below threshold
Repairs = under budget
Timeline = over budget

Lessons learned? Challenges?

Quickly changes sales environment in April/May-2022.
Appraisal issues during first contract (April) caused deal fall-through.
Re-contracted at lower price (still above going in ARV)

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

Yes, contact for details.

[Kristi Tietz]

Hey, luv this! Always looking to JV w the right partner 👍🏼😎 I live in Sterling Heights☺️