Northeast Phx FLIP - Yes, they still exsist!

[Cara Lonsdale]

Investment Info:

Single-family residence fix & flip investment in Phoenix.

Purchase price: $165,000
Cash invested: $32,500
Sale price: $235,000

I picked this property up at Trustee sale for $165K. It was a 2/1 with 824 sq ft in a Northeast Phoenix neighborhood near alot of neat amenities including Lookout Mountain trailhead. Location was also convenient to PV Mall and Desert Ridge, both within 8-10 miles from property with a quick drive to either one.
This was a full gut. The yard was overrun by weeds and garbage. The inside was completely full of the previous occupants belongings, and more garbage.
We demo'd all flooring and cabinets. We removed the popcorn ceilings. We reconfigured the kitchen from a galley to a U-shape and put in brand new cabinets, backsplash, quartz counters, light fixtures, appliances, and hardware. For the bathroom, we resurfaced the tub/shower, and installed a brand new vanity and deco tile wall with all new fixtures, mirror and light. We added new closet doors, ceiling fans and light fixtures throughout, and had it freshly painted inside and out with new baseboards to finish it off.
We did some repair work on the exterior siding, and had to recreate a side gate.
We blasted all the weeds and cleared both front and back out for a fresh start. We grew grass in the backyard, and had a planter put in right by the front entry.
Once completed, property was only on the market for a couple of days before being snatched up.

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

I am familiar with the community. I know the floorplans. So, it is becoming more routine to flip one of these. We have gotten in the habit of using the same types of finishes and materials, so it makes budgeting and execution easier.

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

It was a trustee sale. I had been following it on the Trustee sale list and went to the auction downtown where they are held. I knew my top number, and was able to bid up any competitors to just under my top figure to acquire the property.

How did you finance this deal?

I used a hard money lender that I have a relationship with. I was able to secure pretty good terms with only 10% down. That way, I could preserve my cash for the rehab. I chose to fund the rehab myself instead of build it into the financing as I wanted to avoid the draw fees.

How did you add value to the deal?

Economical high end finishes always help to take a small property and make it feel like a luxury remodel. We always use professional photography and virtual staging for all of our projects.

What was the outcome?

Property sold within days and recorded as the highest dollar per square foot in the community to date.

Lessons learned? Challenges?

Using materials you are familiar with is a great way to predict budget and outcomes. When you look at the portfolio of our projects, they have alot of things in common.....flooring, backsplash, even cabinets. However, these are the things that people like in our market, and help us sell quickly. So, using them on project after project secures the WOW factor you hope to achieve when Buyers see the finished product.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a Realtor in AZ. So, I listed this property myself. I also used targeted online ads to draw attention to the property, and the property website I had created for it.