Cosmetic Fix and Flip in Chula Vista, CA

[Drew Chance]

Investment Info:

Single-family residence fix & flip investment in Chula Vista.

Purchase price: $470,000
Cash invested: $144,000
Sale price: $615,000

SFR residence built in 1992, needed cosmetic renovations only to increase value. Seller's had let the condition deteriorate over the years, wanted a quick cash purchase and short rent back to help them move to their next location, freeing up the equity they had built in the home. We were able to close the transaction in 10 days, rented back for about 20 days, remodeled in 30 days, and sold it quickly.

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

This is the primary investing strategy that my company focuses on; residential fix and flip (value add) in the San Diego area.

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

This opportunity was brought to my attention from an Agent in my network that had the listing upcoming. We made an offer immediately and secured the property.

How did you finance this deal?

20% down and a hard money loan for the remainder of the purchase.

How did you add value to the deal?

Renovated the entire house: new kitchen, refinished wood floors, remodeled bathrooms, painted inside and out, landscaping, baseboards, all new lighting fixtures, and more. Got the house showing in its best light for the market.

What was the outcome?

We were able to purchase the home in July and exit by middle of October. We sold the house for our pro forma number, and came in at budget on our renovation.

Lessons learned? Challenges?

This was one of the smoother transactions I have been a part of. With that said, I think we can always improve and we made some material purchase mistakes that maybe cost us an extra $1000. But as far as time held, remodel, listing, it was a very easy transaction that I never doubted would be a successful investment.

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

Yes, the agent who brought us the deal is an absolute pro. And our hard money lender has been so easy to work with and always performs quickly for us. Please DM me for details on names, as I don't want to broadcast without their permission.