Complete Reno for Late 1990's Single Family

[Stephany Johnson]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $220,000
Cash invested: $35,000
Sale price: $310,000

This was a total renovation. Turned the garage back into a garage. The smell was atrocious. Never been updated since 1998.

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

The home had good bones and located in a decent subdivision within the highest rated schools. It had been neglected and we knew we could bring it back to life and make it a beautiful home again.

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

Unfortunately, I found it on the MLS, so we did pay retail. We should've negotiated better to get the price down. It had a ton of showings due to the time of the year, the price point and the schools.

How did you finance this deal?

We did our first hard money loan.

How did you add value to the deal?

We did 90% of the work ourselves. A lot of sweat equity. We updated the entire house with a beautiful design.

What was the outcome?

The home was listed a few weeks after school start unfortunately, but the days on market was just 26 days.

Lessons learned? Challenges?

We paid too much for the home. We priced it too high, even though we had many showings at the original price. We learned what people will pay to be in that specific subdivision. Right now, the home is the highest sold in the subdivision, so we feel good about pushing up the neighborhood.

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

I'm an agent as well. I'd recommend me. ;)