Childhood Tear Down into Luxurious Masterpiece

[Augustus Bukowski]

Investment Info:

Single-family residence fix & flip investment in Seattle.

Purchase price: $960,000
Cash invested: $650,000

Purchased my childhood home, a beautiful 1915 craftsman in Seattle. We purchased the home to relocate my father and give him the money needed to retire. From there, we have gutted the home to the studs, increased the square footage, and completely transformed the home. This luxurious home is now 5 bedroom, 3.5 bathroom, 3 fireplaces, 2 kitchens, and used over 10 slabs of Marble to complete. We are excited to share this amazing transformation once it is complete in the next 30 days.

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

My childhood home was a beautiful craftsman. It was always my moms dream to renovate the home, but my family never had the means to do so. The home was rundown over the years, but provided great bones and was located on one of the best streets in the high end Seattle neighborhood of Phinney Ridge.

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

I grew up in the home, called my pops, and said hey dad your selling. Although the home was a tear down, I wanted my dad to get top dollar. So we listed the property on the MLS. We got 5 offers for the home, of which all were financed. in its current condition and price, the home was not eligible for financing, so I matched the top offer and bought the home from him with no Realtor Fees.

How did you finance this deal?

I used seller carried financing for closing. Once we obtained our permits for the renovation, I received a construction loan from a local regional bank in the area. We put down 20% of the project cost, and were financed the remainder.

How did you add value to the deal?

We completely gutted the home down to the studs, the only thing remaining in this home was some framing. We expanded the square footage, added an ADU, and put in the highest level of finishes possible on a spec budget.

What was the outcome?

We have the satisfaction of helping my dad close out this chapter of his life and move on to his new life as a grandpa up in Edmonds. The home is not complete yet, so we will circle back once the home is listed and sold.

Lessons learned? Challenges?

Although completing a major remodel can save time on permitting, the amount of time and money you save overall can end up being the same or more than just starting from scratch.