Fix and flip with a 2nd story addition

[Scott Barrett]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $175,000
Cash invested: $225,000
Sale price: $460,000

Bought a small two bedroom house and added a 2nd story addition. All new finishes on the inside, new exterior and new 2 car garage

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

We love improving properties in an area by adding on, while keeping the homes style and size in line with current neighboring properties.

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

My partner and real estate agent had the house listed and it wasn't selling for asking price. We offered to purchase it on a contract for deed.

How did you finance this deal?

Eventually we used some private money and a bank loan

How did you add value to the deal?

As a contractor we are able to envision adding square footage to the property to add increased value with more square footage and many upgrades. We like to buy them as ugly as possible.

What was the outcome?

We made money, but the project took too long because we had to finish up our last two projects for owner occupied homes.
We are switching our focus to vacant properties only

Lessons learned? Challenges?

Get flips done faster

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

We really like working with Bank Cherokee