Fix & Flip with a basement finish

[JD Gunter]

Investment Info:

Single-family residence fix & flip investment in Colorado Springs.

Purchase price: $270,000

Cash invested: $54,000

Residential fix-and-flip purchased off market. I'm in the middle of reconditioning. Shooting for an ARV of $330,000

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

The seller was in a bad situation. She had lots of equity but recently lost her job. When she accidentally ran over her well pump, she was done with the property. She contacted me as an investor associated with the brokerage, and we made the numbers work.

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

It's an off-market deal. She came to our brokerage for a traditional listing, then lost her job and needed to cash out quickly.

How did you finance this deal?

Through my standing credit line at a local bank. I use a HELOC for repairs and upgrades.

How did you add value to the deal?

Interestingly, there was a finished bathroom in the unfinished basement. This allowed us to finish the basement for $18k, adding 700 square feet and two bedrooms. We also pulled the polybutylene plumbing throughout the house while the basement was still unfinished.  

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

I'm a licensed broker at The Circa Real Estate Group. My speciality is in finding investments for myself and others.