Quick Condo Cosmetic Flip

[Drew Chance]

Investment Info:

Single-family residence fix & flip investment in Coronado.

Purchase price: $700,000
Cash invested: $765,000

2 Bed, 2 Bath, 975 Sqft Condo in Coronado. Cosmetic renovation of the interior included: New Kitchen, bathrooms, flooring, base boards, doors, designer built ins, and new light fixtures and LED can lighting. House just opened escrow today. But reach out to me direct for details. Purchased in June, and opening escrow early august. Should be full cycle in around 100 days total!

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

I grew up in Coronado, have had my office and business located in Coronado for years, and do most of my investing around San Diego, but usually not in Coronado. So it is always a treat to do a project close to home.

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

The deal had sat on the MLS for quite a few weeks. It was one of the lowest priced, well located condos in the entire zip code. I am a broker, and negotiated directly with the listing agent.

How did you finance this deal?

We brought in a cash investor partner for the majority of the acquisition and renovation.

How did you add value to the deal?

We renovated the entire unit: kitchen, baths, flooring, head to toe remodel.

What was the outcome?

We entered escrow in early August 2019. Near our proforma sale price.

Lessons learned? Challenges?

Dealing with the City and permits is always a challenge. But we were able to pull the permits fairly quickly, made it through inspections during remodel, and had a good sized hiccup at final inspection with the City wanted additional electrical upgrades, even though the home passed rough electric. We have known for a while not to argue with the city, just work with them to make them happy and move on.

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

Yes, I am a real estate broker that found, negotiated the deal on the front side with a listing agent. Now I am the listing agent working with a cooperating selling agent. Both agent experiences have been great. No lender on this transaction. Escrow and Title are our usual people: Elite Escrow Coronado and First American Title.