Stuck in the past no more!

[Georgui Kasaev]

Investment Info:

Single-family residence fix & flip investment in Athens.

Purchase price: $97,500
Cash invested: $50,000
Sale price: $220,000

This was a beautiful home with great bones in need of updates. Gutted the entire house replace paneling with drywall, raised the sunken flooring in the living room to match the level of the rest of the house, increased bathroom size while rebuilding the bathrooms, rebuilt the kitchen to increase size and utility, installed bamboo flooring in most of the house, tile in the bathrooms, painted in and out, landscaped the home.

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

I am currently focused on flipping to grow my nest egg so I can start fixing to hold.

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

I found it through networking.
I offered the seller two options one where he can stay in the deal and make a bit more once we sell it. Second to sell it to me outright for cash. He chose the second option.

How did you finance this deal?

With cash. I brought in two equity partners.

How did you add value to the deal?

Paint exterior and interior. Gutted the entire house replaced paneling and popcorn sealings with drywall. Raised the sunken living room to be on the same level as the rest of the house. Changed the location of one of the water heaters to provide room for extension of the bathroom in the master. Rebuilt the master bathroom. Opened load-bearing walls to create an open floor concept. Gutted the entire kitchen to increase the size and install concrete countertops. New everything.

What was the outcome?

Profit for everyone involved.

Lessons learned? Challenges?

Never pay a subcontractor by the hour, charge by the job.

If you are going to sell the home prior to finishing and if you are going to alow buyers to choose finishes give them a detailed list of what they can change.

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

I am a REALTOR in Athens Georgia, I represented the sale of this property. It went on the market on Friday and was under contract the following Monday. I recommend my services for all your investing needs.