Albuquerque - Uptown Overhaul & Flip

[Debra Dee]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $190,000
Cash invested: $40,000
Sale price: $293,000

Popular, centrally located neighborhood in the Uptown area. Long time owner had done minimal improvements and property needed a cosmetic overhaul, plus upgraded mechanicals and new roof. Solid house. Solid neighborhood. Good return without any big surprises or bad experiences.

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

This is the type of flip that I normally go for. The team of professionals that I work with, and I, have a formula that tends to work for us, and those are the properties that we tend to go for.

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

It wasn't on the market, but my agent was aware of it and negotiated the purchase and sale of it.

How did you finance this deal?

Cash/Line of Credit

How did you add value to the deal?

Modernizing the layout of the entry and great room area, brightening interior, all new kitchen/baths, fresh paint, new fixtures, a lot of cleaning, and some larger improvements like the roof.

What was the outcome?

Fresh, clean and modernized appearance that has broad appeal, whether someone wants to play up the mid-mod ranch look from the era when it was built, or more traditional or also more contemporary. It was a clean and attractive blank slate, turn key and ready for any buyer. Within a few hours, we were receiving offers and sold above the asking price.

Lessons learned? Challenges?

Stick with what you know, and with people that know what they are doing.

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

Yes, my agent is a long time agent in the ABQ area, and is one of the best of the best. We've worked together for years, and he has never steered me towards a bad deal. I've flipped houses with him, and purchased rentals, and my own house too.
I have a good local lender that I've used for conventional financing on my personal house and rentals. The flips have been funded with cash, including cash from a line of credit, so I have not used a private funding source in many years.