First off market we bought direct from seller

[Gus Muller]

Investment Info:

Single-family residence fix & flip investment in Minneapolis.

Purchase price: $145,000
Cash invested: $80,000
Sale price: $420,000

First off market purchase direct from seller. We rehabbed for one year before moving in, and then finished the basement adding a 3/4 bathroom, bedroom, and family room before selling. This house had excellent bones, and all of the original woodwork, fireplace, and double built-ins.

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

The house needed a ton of work, but I could see the end result of a full rehab. It had everything to offer in old world charm meets modern upgrades.

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

Someone called our real estate brokerage. We presented all options to the seller including traditional MLS sale. They decided to go with our cash offer instead.

How did you finance this deal?

Cash

How did you add value to the deal?

Complete rehab including new kitchen, bathrooms, finished basement, drain tile, roof, exterior paint, electrical upgrades, whole house re-plumb with PEX, privacy fence, floating deck, etc.

What was the outcome?

The outcome was fantastic. The market picked up and we were able to make a substantial tax free profit since we lived there as our primary residence during the rehab.

Lessons learned? Challenges?

This one was super challenging to bring back to glory, and took a ton of sweat equity. I wouldn't even want to count the number of hours my wife and I had into this house. But in the end, it paid off!