Change in Exit Strategy

[Todd Drake]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $162,500
Cash invested: $45,000
Sale price: $247,900

100 Year old classic craftsman.
2 bed, 1 bath with a full basement.
Still had active knob & tube wiring and it's original galvanized plumbing.
An original porch that was extended and enclosed and about to fall off the side of the house!
Rip and replace: All wiring, all plumbing, kitchen, bath and build a new deck.
I had plans to add a garage but family matters made me have to sell and move closer to home.
Great experience! Every decision was mine - with no arguments!

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

A fix and flip that I could live in.
Small enough I could do all the work myself (except electrical and waste plumbing - I left that to the pros)

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

Found on MLS listed for $189,900, probably the 25th property I looked at. It was an estate sale of a very out dated house.

How did you finance this deal?

100% Cash!

How did you add value to the deal?

New electrical from the utility pole to every switch and outlet.
All new plumbing.
Opened the floor plan, new kitchen, new bath and new floor throughout.
Added finish details and some nice interior color choices, at least, I think so...

What was the outcome?

Sold for $8,000 over ask.

After some inspection contingencies, like an ancient underground heating oil tank remediation... I ended up with about 8% return on the property but I also didnt' pay rent for a year! That saved me about $14K which brought me to about 13% return!

Lessons learned? Challenges?

Make decisions and act on them! I spent to much time contemplating which tile and how to use it... I spent 3 month agonizing over floor choice! I'm not a desinger but I found out I'm actually not bad at it! I tended to end up back where my initial instinct lead me...