Squatter Central rehabbed to its Former Glory as a Family Home

[Francesca Baglio]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $129,000
Cash invested: $30,000
Sale price: $229,000

Single family 3/2 turned 3/3 with MIL unit
Purchased from a wholesaler
Cash for keys strategy deployed to establish vacancy

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

As a first-time flipper, I was looking for a property to rehab with a high yield that was not a complete gut job

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

I was working with a broker in that area who presented the property to me

How did you finance this deal?

I was able to borrow cash from my father (and investing mentor) to purchase the property cash

How did you add value to the deal?

Flipped in an 8 week rehab including cosmetic, electric, plumbing, and landscaping improvements to the interior and exterior of the home, adding one bathroom and a back deck. When I purchased the property, it was occupied by squatters and was apparently being used as a drug house. After extensive cleaning and renovations, the property was a beautiful home again.

What was the outcome?

A total profit of about $50,000 and the confidence to do the process all over again

Lessons learned? Challenges?

This was my first solo project as a real estate investor, and as such I attribute most of my knowledge and experience to this transaction. Through this flip, I was able to develop my negotiating skills, learned to manage workers, and refined technical skills like patching and (properly) painting sheet rock. I learned the risks and rewards of property ownership, and how advantageous it is to be within a mile radius of a Home Depot branch. But most importantly, I learned how much I am capable of.