Flipping in Northern Michigan

[Mordechai Reshef]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $32,000
Cash invested: $105,000
Sale price: $150,000

Full Rehab of a 4br Single Family home in Northern Michigan

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

Low Purchase Price.

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

We found the property Through the MLS
the Listing price was $44,000
after few iteration we managed to lower the price to $32,000

How did you finance this deal?

we are using Cash with all our investments

How did you add value to the deal?

When we purchased the property the house was gutted
we did a full Rehab including:

1. Roof replacement
2. exterior painting
3. Interior Painting
4. Flooring
5. kitchen
6. drywall finish
7. new pluming
8. electrical update
9. insulation upgrade
10. bathrooms
11. windows replacement
12. doors replacement

What was the outcome?

we have listed the house for $144k.
After 2 days we have received an offer for $150k !

Lessons learned? Challenges?

I was wrong when i estimated the cost at first place. it was about 40% more then what i expected.
from the other hand, I have used high-end products that helped me to add value to the property and sell it fast.
Such as premium vinyl flooring and granite counter-top

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

Lynette Priest
Real estate one , Traverse city , Michigan

[Mordechai Reshef]

Originally posted by @Michael Ablan:

Nice work @Mordechai Reshef!  These are the types of reno's we get stuck with all the time in my area.

Was the amount of work worth it to you, or would you stick to the less labor intensive rehabs?

Unfortunately it wasn't worth it.

The profit was ok, but the time it consumed for subcontracting everything and making sure the job is done right, made it a headache.

Next time i  will not take such a big project until ill find a contractor i can trust.