The power of adding value to a house.

[Taylor Walker]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $812,000
Cash invested: $350,000
Sale price: $1,618,000

We added significant value to this property by doubling the square footage of the existing house. Pushed the resale value by increasing square footage.

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

We found a property that was about 1200 sq ft but was sitting on a 6200 square foot lot. We saw that the comps were much higher with a square footage of 2000- 2500 so we decided we could add square footage.

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

Found it on the MLS. It hit the market and the same day we saw it and wrote an offer. Used the listing agent to incentivise him to help us secure the deal.

How did you finance this deal?

First position hard money, and second position private money lender.

How did you add value to the deal?

Added square footage and remodeled the whole existing house/lot.

What was the outcome?

Sold the property almost double what we paid for it.

Lessons learned? Challenges?

The contractor was the main reason we got delayed. From here on out we make sure that whatever contractor we use has a crew of guys that will work efficiently, and diligently. Also, make sure you have a contractor that is up to date on the city codes when building because if they're not you'll have a challenging time passing inspections.