An Eastside Kansas City Fix & Flip - Value Add

[Keith Johnson]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $62,000
Cash invested: $40,000
Sale price: $150,000

Beautiful remodel in Kansas City’s Oak Park neighborhood. It was a rare 4 bed, 2 bath bungalow had brand new kitchen, bathrooms, windows, roof, gutters, modern light fixtures, plush carpet in bedrooms, and more. Exterior had fresh paint, new cedar shutters, and curb appeal for days! First level had two bedrooms and a full bath; second level had a third bedroom/office and a primary suite with ensuite bathroom and walk-in closet. Kitchen was updated with brand new cabinets and granite counters.

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

As a real estate agent/investor I have access to multiple sources for acquiring properties. So, when I saw this property on the MLS and was able to preview the property I knew there was an opportunity to completely overhaul it by adding value to the home.

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

I found the deal on the MLS and was able to negotiate the purchase price down. The sellers were local investors who were selling off their portfolio. This property was one the many I was interested in.

How did you finance this deal?

This is deal was financed using hard money, grant funds, and personal funds.

How did you add value to the deal?

The entire house was updated from the inside out.

What was the outcome?

The property was sold to a very dear my friend of mine who's a real estate agent. Her client's bought the property cash and were able to close in eight business days.

Lessons learned? Challenges?

Because there is a clock I was working up against, I learned that I had to be decisive in my decision making and trust my gut. There was a part of me that wanted everything laid out but there are facets of the project that required my voice in order for the project to move forward. More importantly, it pays to be connected and in right relationship with local agents that can help you put a deal together.