Fix and flip & Short plat opportunity

[Jeff Hornberger]

Investment Info:

Single-family residence fix & flip investment in Spokane Valley.

Purchase price: $97,000
Cash invested: $117,000
Sale price: $246,000

The strategy with this property was to take a 19,000 sqft lot and split it into two parcels. We would sell the parcel with the house and keep the vacant lot that would we would then build a duplex on. The goal was to break even on the house including all costs to split the lot. We ended up losing $1200 on the flip but ended up with a lot and will be building a duplex in the coming year. The lot is approximately worth $70,000 as it sits.

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

Our long term play has to been to acquire rental property. This opportunity presented the ability to flip the house and end up with a free and clear lot where we could then build a duplex.

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

This lead came from facebook. We posted a different flip and she messaged us if we would be interested in coming by the house to make an offer. We negotiated it according to the end goal in mind which was to at least break even on the flip and end up with the lot.

How did you finance this deal?

We obtained private money for the purchase of the property and we fronted the rehab costs.

How did you add value to the deal?

By short platting the property from one lot to two lots. The left over lot is zoned multifamily as well.

What was the outcome?

We lost $1200 on the flip and ended up with the lot free and clear that is valued at $70,000.

Lessons learned? Challenges?

This was the first time we split any property up. Ive learned a lot about that process and the time it takes.