Finished flip, going on the market today

[Tara Kneiser]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $74,100

Cash invested: $18,500

3 bedroom, 1 bath, 1200 sq foot single family home near top rated elementary school.

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

I drove by this house every day on the way to my kids' elementary school. An older woman lived there, who was a crossing guard and ran a licensed day care out of the home. I knew with it being a licensed day care it had to be in decent shape. Also, it's a one minute walk to the elementary school across the street, which is one of the best in town. The neighborhood has older ranchers, but all well maintained.

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

I drove by and noticed that the house was vacant and there was a note taped in the window (sign of foreclosure). I did a search for the property and it wasn't on the MLS, but was going to be auctioned online. I knew that the home was a licensed daycare so per state regulation it couldn't have been in too terrible shape. I won the online auction.

How did you finance this deal?

Purchased with a HELOC loan on my personal residence. My grandmother passed leaving my mother some cash, and she invested $45k of that cash into the home. Used personal credit card and remainder of HELOC loan for rehab costs.

How did you add value to the deal?

We completely gutted the kitchen and bath down to the studs, revealing an old slow water leak. Fixed plumbing and replaced rotted subfloor. We added a tile surround and flooring in the bathroom with modern fixtures. We installed all new cabinets and brand new stainless appliances in the kitchen.

What was the outcome?

It's going on the market today, I will update with sale. However, the neighbor came over and praised us for fixing up the house and was very impressed with how it looked. He grew up across the street and said it's the best it's ever looked. 2 more people pulled up and asked about the property as we were photographing it for the listing. Market is really good right now, and our realtor is very optimistic.

Lessons learned? Challenges?

Honestly, unless the house doesn't sell or home inspection shows something we missed, this was a great investment. No major surprises or anything that set us back or required major work.

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

Kristin Choate