Second project - trade up

[Michael Klingerman]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $1,275,000
Cash invested: $275,000
Sale price: $1,775,000

1954 Mid-century modern. 4 bed, 4 bath. 2671 sqft house on 28750 sqft wooded lot

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

Great location and amazing original house that was well cared for but still had room for improvement.

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

Our local realtor

How did you finance this deal?

20% down and conventional loan on the rest. Personal reserves to start renovations then got a HELOC to finish.

How did you add value to the deal?

The back yard was wooded and heavily overgrown so we cleared scrub brush and overgrowth then added a pool, grassy lawn and outdoor kitchen amongst the mature trees. Cleared overgrowth in front too then added new floating concrete pads as the approach to the front door. Redesign/remodel the kitchen with new island in place of demoed wall, new cabinets, countertops, appliances and added skylights. Redesign/remodel primary bath. Refinished floors. General paint throughout interior and exterior

What was the outcome?

The house was well received with multiple offers going a little over asking.

Lessons learned? Challenges?

We finished and sold during the 2008 market crash which caused stress and concern but we luckily found buyers and were still able to make money.