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Updated over 5 years ago,
Highland Park Craftsman - Mesa
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $455,000
Cash invested: $152,000
Sale price: $725,000
Single Family Craftsman home located in burgeoning Highland Park, CA. Project consisted of a full gut renovation with the addition of one bathroom and 100 SF of covered porch with an attached deck. Original Windows and wood floors restored to maintain the character of the home accompanied by modern interior aesthetic.
What made you interested in investing in this type of deal?
Always had an interest in real estate. The real motivation was to make some additional cash on top of my 9-6 job to invest in multi-family units. The idea of forcing appreciation into a property through improvement was also intriguing. Taking something that is run down and neglected to create a beautiful new home for someone is also a bonus.
How did you find this deal and how did you negotiate it?
The deal was brought to me by a friend. I began searching for real estate deals and contacted who I knew in the industry to assist. He just so happened to land the listing two days prior to us meeting. He helped guide me through the first negotiation as it did go over budget but we believed in a solid ARV so our purchase price was still on the low side.
How did you finance this deal?
The deal was paid for in cash with the renovation being paid for in cash and a number of credit cards.
How did you add value to the deal?
We took what was a very fun down home and added a bathroom, modified the layout ever so slightly and added 123SF off the back of the house in the form a new balcony. The home was a craftsman and leaving the original windows and refinishing the original floors left a lot of charm.
What was the outcome?
Well the outcome was astonishing. The house itself was great but the response was unexpected. House sold for $40,000 over the asking price.
Lessons learned? Challenges?
Never trust your friends, always get a second opinion, and never do work without permits.
