Downtown Gilroy Renovation project

[Joe Wortham]

Investment Info:

Single-family residence fix & flip investment in Gilroy.

Purchase price: $505,000
Cash invested: $100,000
Sale price: $700,000

This is a almost 100 year old property that is zoned in a transitional district. That means it can be SFR, R2, Mixed use or commercial. This was almost 1100 square foot 2 room office space with no kitchen and half bath without a shower. For the sake of the easiest rehab lending we chose to go the SFR route. 6 months later it is a 3 bed 2 bath with full kitchen. We plan to later add another dwelling in the rear of the property. We considered fix and flip but want to hold on to this one as it is in a downtown setting and we see future value in the area. We will move into it so I'm calling it a BRRRR. Thanks BP for the education and information!

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

Price and opportunity

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

Found this deal on the MLS

How did you finance this deal?

Financed through a renovation loan.

How did you add value to the deal?

My wife and I are a real estate team so our commission went into the initial investment into the deal.

What was the outcome?

Completed renovation and higher value.

Lessons learned? Challenges?

Staying on budget was a challenge but we did it.

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

I myself and my wife are a real estate team in the South Bay Area. Joe and Tari Wortham at the Realty Society in gilroy.