$28k for California rehab

[Jo Annna Wright]

Investment Info:

Single-family residence fix & flip investment in Stockton.

Purchase price: $28,000
Cash invested: $120,000
Sale price: $215,000

Complete rehab - I put in $500 (EMD) of my own money rest was OPM. I purchased as a 2-1 and rehabbed it to a 3bed 2 bath with a master suite all in 1106 sq ft. on 10k sq. lot. I could not change the footprint due to being in flood zone. Moved the kitchen from the back of the house to the front of the house. All new electrical, walls, flooring and it was on a slab where I had to have it jackhammered for all the new plumbing to add the 2nd bathroom. I went through 3 contractors

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

I negotiated it down from $49,000 to $28,000 - Single family house in California. Unheard of so I went for it. It was also a big challenge because I had only done small rehabs (paint, carpet and at most new kitchen or bathroom - not rearrange the whole house. So it looked fun.

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

I put an ad out on facebook (as a realtor) saying I could offer a CMA to show you the value of your house. An overextended investor answered it. So my argument was that I'm am licensed to know the value and it's only worth $25k - he wanted $49k so we met at $28k and he walks away from it all.

How did you finance this deal?

OPM - all cash