Investment #13 fix and flip

[Gus Muller]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $260,000
Cash invested: $30,000
Sale price: $341,000

Investment #13 fix and flip. We thought about keeping this as a rental, but ended up selling it to pursue other projects.

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

The area was great and the house was large. We ended up doing a lighter rehab on it, and offered it at a more affordable price. We didn't want to do a full gut rehab as we felt this would be a little riskier given the busy road, no central AC, etc. We left the basement unfinished so that the new owners could make those decisions later.

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

This deal was listed on our local REIA website. We were the first to see it and offer.

How did you finance this deal?

Private money investor.

How did you add value to the deal?

Removed wall paneling, drop ceilings, and unnecessary soffits. Full interior paint and wall texturing. Painted cabinets. Replaced galvanized plumbing to kitchen. Fixed up the bathrooms, refinished hardwood flooring/stairs/etc. New light fixtures and receptacles throughout.

What was the outcome?

We did pretty well on the flip and turned a nice profit. The house was done start to finish in 6 weeks.

Lessons learned? Challenges?

Home was built in 1900 but sat on a block foundation. Turns out that it had been moved sometime in the 1950's. The paneling and drop ceilings hid some pretty extensive plaster damage, either from the house being moved or from years of settling. It ended up being a lot more work than anticipated. If we come across this scenario again, we will be more prepared!