Modern Farmhouse Flip in Plano TX

[Lauren DeFreitas]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $219,000
Cash invested: $120,000
Sale price: $525,000

Full renovation including all new plumbing (removed cast iron pipes), removed load bearing walls and installed beams, new electrical panel, leveled and resurfaced concrete, all new flooring, cabinetry, doors, and painted interior and exterior. All properly done with permits, too! 100% financed the purchase and renovation by leveraging another investment property.

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

I grew up in Plano so was very familiar with the area and the community. This particular house was in need of a deep dive to bring it up to today's standards of safety so I knew it needed expert care. Plus, what a great opportunity to piggyback off the ranch style to do a modern farmhouse vibe that was so high in demand!?

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

I actually met the home owner at a medical office (she was my nurse). She saw my T-shirt for my construction company and took a picture (with permission). I few months later she called and we negotiated an off-market purchase.

How did you finance this deal?

100% financed the purchase and renovation by leveraging another investment property, as a down-payment of sorts. Payments were interest-only for 12 months and then a balloon payment was due upon sale.

How did you add value to the deal?

Full renovation including all new plumbing (removed cast iron pipes), removed load bearing walls and installed beams, new electrical panel, leveled and resurfaced concrete, all new flooring, cabinetry, doors, and painted interior and exterior.

What was the outcome?

Sold it off-market to a foreign investor whose plan was to live in it for a short time while her child was finishing school in the area, and then she is going to offer it as a luxury rental investment property.

Lessons learned? Challenges?

So many! You have to keep track of everything methodically. Where are the trades, the money, the materials ??? Dedicated project management is the key to the success of a flip.

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

I was in real estate school during this process so yes ... I'd recommend me now :)