Flip House in Somerdale NJ

[Tara S.]

Investment Info:

Single-family residence fix & flip investment in Somerdale.

Purchase price: $150,000
Cash invested: $40,000
Sale price: $265,000

We bought this old out dated bi-level home in a HIGHLY desirable neighborhood. We converted a part of the garage into a mudroom. We also converted the home from oil to gas. We touched on just about every part of this home.

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

The house was just out dated. The neighborhood it was in was so desirable we knew it would be an easy sell.

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

We found his deal through our real estate agent at the time. We put in our offer that day, we got a call back for best and final because there were multiple offers on the property. So we gave them our highest and best offer and won the bid at 155k. After the home was appraised it was only appraised for 150k so that's what we ended up paying for it.

How did you finance this deal?

Private money. We brought in a family member to invest with us.

How did you add value to the deal?

We converted the home from oil to gas. We put in all new windows (including two huge picture windows). We totally updated the kitchen. We did a mudroom addition to set the home apart from others in the neighborhood also to add more square footage. We refinished the hardwood floors, and updated the tile and other flooring. We also completely updated the HVAC. Also since we converted the home from oil to gas we were able to install a gas range.

What was the outcome?

We were doing the finally clean up to list the home that night and we hung up the for sale sign and within hours someone called and asked if they could come see the house. I told them it was not on the market yet, or clean. They insisted on coming in to see the home because they were leaving to go home to florida that day and this was the last day here and they had their eye on our house for months. They LOVED it and offered us full list price on the spot and purchased the home 60 days later.

Lessons learned? Challenges?

We learned not to allow others to influence our decisions. We also learned that we needed better systems in place because Justin threw his back out in the middle of the project which caused us to hault for months and if we had better systems in place we would have been able to get the project complete even with Justin out hurt.

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