NJ Flip: Before/After/Numbers

[Manuel Rosa]

I shared some details on Twitter of a home I recently renovated in Kearny, NJ, and was asked to share more info here. I am a listener of the Podcast, but don't typically participate in the forums, but here goes:

How I Found it: this was a bank owned home (REO). My partner brought it to my attention, and we immediately went right to the listing agent. I'm an REO listing broker myself, but I can't buy my own listings. However, I know that working with the listing agent can get you access to valuable info, which is far more important than the commission I'd otherwise earn. This became vital to this acquisition, as there were multiple offers that we ultimately beat out as a result.

Property details: 3 bedroom/2 bath with finished basement, driveway and detached garage. The entire exterior needed to be upgraded (roof/siding/guttters). Interior had hardwood floors, which could be salvaged. It lacked a bathroom on the second level (which is where the bedrooms are), a functional deficiency we knew would  need to be addressed. We've done this before by adding a new staircase from the first floor, and using the hallway of the existing second floor to then create the bathroom. 

The Numbers: Aquisition and settlement: $200,000. Construction costs and permits: $80,000. Sale price: $340,000 (received full list price offer after one day on market).