A 1930s Bungalow Brought Back To Life

[Andrea Hubbell]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $179,845
Cash invested: $110,000
Sale price: $400,000

1930s bungalow in Charlottesville's 10th and Page neighborhood was in need of a complete renovation, including structural foundation work. We replaced all plumbing and electrical, stabilized the foundation, added a small addition to the back with second full bathroom and pantry, completely renovated the entire interior including kitchen and existing full bathroom, and installed HVAC.

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

My husband and I are both trained as architects and enjoy the renovation process, utilizing our investment projects to experiment with design ideas. This neighborhood was up-and-coming when we chose to invest in it, and in fact this same property sold again 3 years later, with no improvements, for $502,000.

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

We found it through the MLS and negotiated the deal with our real estate agent at the time. We were one of 5 offers, but the only cash offer (private money), and the home would have been tough to finance as it lacked an operational kitchen. We further negotiated the price down after discovering structural issues during the inspection period.

How did you finance this deal?

Private money.

What was the outcome?

We exceeded our expectations with the final sale price. We wound up receiving multiple offers before even putting it on the MLS.

Lessons learned? Challenges?

In hindsight, we should have taken this home to the market to increase our exposure as a high-end speculative renovation company. As it was, this was a great first project for us and set the stage for buyers eagerly anticipating our future projects.