Another flip for C&K Home Buyers

[Carrie Alluri]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $260,000
Cash invested: $80,000
Sale price: $380,000

Purchased this house from the family of elderly lady that lived there. Sadly, she passed away. She did not keep the house in good shape while she lived there for 20+ years and she smoked A LOT. She did update the mechanicals and roof, so those pricy issues did not have to be addressed. Getting the smell out was the hardest part, but we got it done. Did not foresee having to update ALL the windows (initially thought only a few were bad), but all of them had seals broken. This was the biggest reha

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

We purchased this property off-market with no realtor, saving on commission fees. This was only 10 minutes from where I live so easy commute. This is was mostly cosmetic updates, with only a few walls that needed to be added and moved.

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

My biz partner knew the previous owner and her family. She offered for us to take the property off their hands so it was one less thing they had worry about after their mother passing away.

How did you finance this deal?

We used Barnett Financing. They were so easy to work with! Highly recommend this company. Dan and Sonia were so great. Look forward to many more projects with them.

How did you add value to the deal?

Did not foresee having to update ALL the windows, but all of them had seals broken. New LVP on first floor, new carpet upstairs. Freshly painted throughout. Converted the upstairs full bath (which was accessible from the hall and primary bedroom) into two full baths, changing this from a 3 bed 1.5 bath to a 3 bed, 2.5 bath. This added a lot of value. Painted the kitchen cabinets, then added quartz countertops. We just made it completely move-in ready.

What was the outcome?

Found an all-cash buyer for full asking price and as-is (no updates needed after inspection). Overall a success!

Lessons learned? Challenges?

Check big-cost items more carefully. The windows took us over our initial budget. There are always surprises. Just work on the solution, don't dwell on the problem.

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

Barnett Financial was our savior. We needed to part with our initial lender because their math was not adding up and they couldn't explain why (very frustrating). Barnett quickly took over our deal and closed within week!