Tiny Home Renovation (Old Town Alexandria) 78k profit (378sf)

[Cheryl Spangler]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $285,000
Cash invested: $40,000

purchase Price $285k
Renovation Cost $40k (on budget)
Renovation Time: 41 days
ARV: $425k

Feature sheet: https://drive.google.com/file/d/1PMMTCmYptc1Jiy14MgAImJyiiEonebQl/view?usp=sharing

Current Rent Long Term in 22302: $1800-$2200/mo
Current Rent Short Term AirBNB in 22302: $2000 - $3000/mo
Current Comparable properties at this price range (are condos with 500-$1100/mo condo fees)

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

Unique home, tiny home, full renovation to bring luxury to the tiny home community, location (king st alexandria). First time JV fix and flip

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

day 1 MLS listing, offered less 1 week closing, they took it. Time and cash sealed the deal

How did you finance this deal?

Cash

How did you add value to the deal?

Project management throughout the process. 99% of the time, buyers press a button to buy, press a button to sell and everything in between is done for them (including taking care of all problems, and selling it in the end)

What was the outcome?

Success, currently active, will update what our final sales price ends up with, fielding calls on the property already.

Lessons learned? Challenges?

If at all possible, never install mini-split, install duct work.
Measure, Measure, Measure. Even then some things don't always fit and you have to come up with a work around.
Hire a separate landscaper to finish it all up for better curb appeal
**all in all was very happy with outcome & quality**

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

myself for real estate & project management, cash for lending, investor friendly title co

[Cheryl Spangler]

Quote from @David Spurlock:

Hey @Cheryl Spangler,

What problem did you run into with the mini-splits? Also, what did you end up selling it for?

 Nothing bad with a mini split in general, it is a 2TON is more than enough for the 400sf space and works great.  It's the visual thing for some people mostly, with such small wall space having it right there in your face isn't ideal. when at all possible, every flip will just get duct work and standard air conditioning.  We are under contract at $375k.  

#1 reason - parking is side street. If it had a parking space in front or right beside the building (even though it 's only 120 walk away) would have been gone the first weekend for more money.  Note to self - never buy a flip without parking.