Worst house in the best neighborhood

[Josh Cotton]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $225,000
Cash invested: $80,000
Sale price: $375,000

This home was a foreclosure, and the home was a disaster. The home needed everything from stucco repair to painting the exterior and interior of the entire home. New floors and carpet, all bathrooms and kitchen needed updating.

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

The home was in a great neighborhood and the home was priced at a little under half of what the comps and next door neighbor's houses were valued at. I knew with some TLC, I could sell the home for a pretty nice profit. After closing costs, agent commissions, etc... my net profit was $52,000

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

Searched websites like Zillow and Realtor.com

How did you finance this deal?

Supreme lending financed the home and the reno loan of $80,000

How did you add value to the deal?

I did a large portion of the work myself

What was the outcome?

I was able to save more money and add to my profit margin in the end.