2 bed 2 bath conversion

[Miesha Purnell]

Investment Info:

Single-family residence wholesale investment.

Purchase price: $82,000
Cash invested: $56,000
Sale price: $186,000

This was a 3 bed 1 1/2 bath flipped property. We added plumbing to the second-floor bathroom, drain tile, new roof, siding and reframed a water damaged bedroom wall. This one was a direct to seller find from my team.

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

The whole second floor was a uncomplete master suite and that was something that's very unique to our market. Although the plumbing was not hooked up and the bathroom itself was oddly shapped we knew that it would be a easy sale even while being on a busy street.

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

I get this deal under contract via direct to seller. The seller and I negotiated based on the condition of the property and the pending code violations. I was able to allow the seller a portion of his closing funds at closing to demolish the attached garage per the cities requests and he was able to get his funds once the work was complete. So our ability to be flexible is what ultimately got the deal done.

How did you finance this deal?

Cash from private investors.

How did you add value to the deal?

We expended the upstairs bathroom and converted the upstairs to a master onsuite, gutted the lower bathroom and removed the laundry from the second floor so that we can convert this property from a 2 bed 2 bath to a 3 bed 2 bath.

What was the outcome?

We made a profit.

Lessons learned? Challenges?

There was leaking from the roof down to the seal plate in the basement which rotted one of the walls in the lower bedroom. There was no way to tell that this was an issue as the wall that was rotted was covered with furniture.

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

No.