Luxury Flip in North Hills (Raleigh, NC)

[Aaron Wilson]

Investment Info:

Single-family residence fix & flip investment in Raleigh.

Purchase price: $480,000
Sale price: $743,500

My GC partner and I purchased a 1964 split level home in the North Hills neighborhood from the original owner. This home has 4 bedrooms, 3 full bathrooms, and 2,068sf. Major updates included: kitchen, 3 full bathrooms, natural gas service, deck, extensive landscaping, and more. We positioned the property for a luxury buyer and sold it for $743,500 which was approximately $360/sf (bought for $232/sf).

Check out the after photos and video here!
Zillow Link: https://www.zillow.com/homedetails/5405-Emerson-Dr-Raleigh-NC-27609/6393875_zpid/
YouTube Link: https://youtu.be/Nul6DWTdfjk

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

I live in the North Hills neighborhood and did a live-in flip at my primary residence. I watch the inventory in the 27609 zip code very closely and can recognize good buying opportunities. Due to the ongoing development in North Hills, there is great buyer demand and strong comp support for high end flips.

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

I found the property on MLS and represented myself in the purchase.

How did you finance this deal?

Conventional loan, 25% down

How did you add value to the deal?

New kitchen, 3 full bathrooms, deck, natural gas service, tankless water heater, extensive landscaping, and more.

What was the outcome?

We made $60k net profit on this project. Fortunately, there's a lot of room for improvement which will allow us to be more efficient on future projects and improve our profits. We were hoping to hit $80k+ at the start, but the market cooled a bit with rising interest rates.

Lessons learned? Challenges?

Many lessons were learned on this project. My wife had our second baby during this time and I lead a real estate team so it was difficult to juggle everything. It was a challenge to find reputable subcontractors and we learned who we would use and who we wouldn't use again. We also finished the project at an inopportune time around the holiday season. On future projects, we would ideally list in a prime home buying season.

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

I'm a real estate agent and represented myself in this transaction.