2/1 to a 3/1 with Studio

[Levi Klein]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $212,508
Cash invested: $20,984
Sale price: $310,000

Great little investment! ended up going from a 2/1 to a 3/1 and adding a studio in the back yard. We didn't make a killing but this was a super simple return to original floor plan home. We nearly done when the neighbor put their house up for sale. We threw a FSBO sign in the front window and sold before completion saving us the cost of landscaping. Cash on Cash return was solid on this deal.

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

Walls were taken out of the original 3 bed home to make it a 2 bed. We basically put the bedroom back in the house put in new trim pack and doors, painted it up and sold it before we completed our whole list by cherry picking the neighbors buyer with a FSBO sign.

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

This was an REO that sat for a very long time. We offered low and did not expect to get the return we saw. This was supposed to be a quick and easy $20k profit but it turned into much more.

How did you finance this deal?

We took a HELOC on our primary and borrowed private money to make a cash purchase then immediated pulled a HELOC on tis place to return the borrowed private money and saved a gob in interest.

How did you add value to the deal?

2/1 to a 3/1 we added the original bedroom back into the house.

What was the outcome?

Better than anticipated without a doubt.

Lessons learned? Challenges?

Any time you can go from a 2/1 to a 3/1 it is easy money