Our first flip was a success!

[Jared Sweerin]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $260,000
Cash invested: $186,000
Sale price: $515,000

This 1917 home was built as a single family home, then converted to an up/down split duplex several decades ago. We converted it back to a single family home, changing the floor plan extensively and replacing nearly all plumbing and wiring. It got a new roof, new paint, new or refinished floors throughout, a new kitchen, powder bath and master bath. This was the first flip for us and our investor.

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

We love rejuvenating old homes with character. This once-majestic home on a prominent street was well-kept but had been turned into a duplex many years ago. We wanted to redeem what was obviously a neat house and give it a new life.

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

We found this home through the selling realtor who was a friend of the family. Because it was a duplex, the home got little interest from conventional buyers.

How did you finance this deal?

Our investor purchased the home outright.

How did you add value to the deal?

My wife is an interior decorator and I am a project engineer. My wife handled all layout changes, decor, finishes and colors. I was working full time as a project engineer during this project and did a couple months' worth of demo, built walls, and did some electrical and plumbing work. Together we were able to show our investor the potential of a substantial home such as this one.

What was the outcome?

We set a record for sale price and per-square-foot price for the neighborhood.

Lessons learned? Challenges?

This was a massive, expensive project. Despite challenges with subcontractor labor rates we were still able to make money. We bought a house that had good bones, and that paid off in a big way as we uncovered no major renovation surprises.

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

Joe Hand (Keller Williams) was the selling realtor and was great to work with.