Hole in the roof ushers in new life to a home.

[Michael Plant]

Investment Info:

Single-family residence fix & flip investment in Eastlake.

Purchase price: $24,000
Cash invested: $30,000
Sale price: $82,000

Green Drive had everything going bad and the roof was literally caving in. I saw the bones were good - it had potential and decided to pull the trigger on my first deal. It was a single story with a slab, pairing that with my construction background I deemed the largest risk was my ability to sell it it when I was done, well that and I had very little money.

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

I had been watching the market for a while, I honed into my area and waited for a deal to present itself. The house was very low purchase price but structurally was sound.

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

I purchased this property off the MLS I don't think many people were looking in this area yet and the house needed so much work most investors weren't jumping with me. I did the math and made an offer the same day.

How did you finance this deal?

I used every bit of cash I had, credit cards and small loans with a credit line from my bank. I used all my extra cash for materials every month until it was complete.

How did you add value to the deal?

I did most of the work myself, subcontracted what I couldn’t do and was able to invest a lot of my own time and energy into really turning this house around. I had some great ideas to make the space doffeeent and better. My goal was always quality over profit so the house turned out beautiful.

What was the outcome?

All in all I cleared a small profit but I proved that I had the ability to recognize a deal and make money from it. The new homeowner has basically a brand new home that will last another 40-50 years if property maintained - everything was new except the bones.

Lessons learned? Challenges?

We had a a lot of challenges but I also found really good sources for cabinets and other materials I still use today. I definitely didn’t make enough money for my time but I am also passionate about bringing these properties back to life so I did learn that it’s more than just about the money to me.

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

Sure! Met a great realtor and used him for a couple years, I also learned a lot about Eastlake rules and regulations. In some ways I know more than most of the realtors in the area!!

[Michael Plant]

Thanks gents!

@Randy Janoe! The cabinet guy is local - however I know they are shipped to him so I can ask him about other distributors if you want. I was just in Asheville fly fishing a few months ago!

@Jeff Brower I actually have done 4 properties in Eastlake/Willowick - it was my target area until I moved further east last year. I am looking into meetups but as a father of 5 and a trying husband it is sometimes difficult to find the time. 

@Brandon Sturgill - I actually have tried it - it's good - not much of a beer drinker though!