PREHAB not rehab for $40,000 in 2 weeks

[Levi Klein]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $252,858
Cash invested: $16,428
Sale price: $310,000

Project took 3 months (2wks work). House had a failed septic We demoed the entire place incld casework. The lower 2 feet of drywall and all the flooring was removed from the 5 small dogs marking everywhere. Repairs we did were minimal except for the failed septic which costed a few thousand dollars. We had the exterior painted and the new drywall taped (ready for texture). The house was ready to be put back together when we sold to an eager investor who will also profit when done. #WINWIN4ALL

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

I can't take credit for the prehab idea because I heard it from one of the podcasts. We purchased this property as a fix & flip.

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

Was contacted by the seller who needed cash to move out of state quickly after a job loss.

How did you finance this deal?

We paid for this deal out of a HELOC on our primary for ease of transaction with plans to Pull a HELOC on the investment after essential repairs were completed.

How did you add value to the deal?

demoed and exterior paint plus made the septic repairs to be functional.

What was the outcome?

quick tidy profit after the prehab

Lessons learned? Challenges?

Some times a quick profit is better than a big profit.