1960s Ranch Flip - 3/1 into a 3/2 for much more value

[Zac Hales]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $140,000
Cash invested: $65,000
Sale price: $245,000

1960s Ranch Flip in North Durham. We had a little bit of a challenge on our hands: a massive oak tree stump, an old septic system, only 1 bathroom in a small house. I am not personally a fan of trying to sell a home where there are 3 bedrooms to any 1 bathroom if I can help it. We opened up the common area, then dedicated some of the space toward having two bathrooms stacked together, rather than just one. Then relocated the laundry and added a door to the storage room for access.

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

Location, barrier to entry, the house itself

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

We found it via agent connections before it was listed.

How did you finance this deal?

Cash

How did you add value to the deal?

We did some rearranging of interior walls in order to make room for a second bathroom to make the home more appealing. We also painted the outside and added a totally new kitchen to go along with the two bathrooms.

What was the outcome?

As costs started to climb, I brought in a buyer of mine personally, and the house was never listed. We did not make what we had hoped but the speed of turnover made up for it.

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

I was the only agent involved