Lake Oswego High-End Rehab

[Matt Williams]

Investment Info:

Single-family residence fix & flip investment in Lake Oswego.

Purchase price: $560,000
Cash invested: $300,000
Sale price: $1,150,000

This project was a home originally built in 1936. When we bought it, the home was about 2,100 square feet with an unfinished basement. Between finishing the basement, and an addition we did, the home ended up being about 3,218 square feet. This was a total gut job where we redid everything. A couple fun things included taking an old second-story deck, doing an addition in that space, we created an entirely new Master Suite. We also made a bunch of other structural and floor plan changes.

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

We like to take on projects that most investors wouldn’t pursue. Ones that will inevitably be a more high-end home when completed. Projects that require a much more significant scope of work than what most investors want. And projects that have opportunities to finish or add space not currently there. This home consisted of all of those opportunity elements.

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

Our realtor knew this home was about to hit the market. We made our offer the first day it was on the MLS.

How did you finance this deal?

Combo of institutional money and private money.

How did you add value to the deal?

Way too much to explain. But we did a Master Bedroom addition, and created a walk-in closet and Master Bathroom where the old master bedroom was. We finished the basement adding a Family Room, two bedrooms, a new bathroom and Laundry Room.

What was the outcome?

We sold it and did very well on it.

Lessons learned? Challenges?

I was surprised that it took nearly four months to sell. Primary reason we got from buyers that passed was the fact that two bedrooms were on the second story, and two in the basement.