2008 Kansas City flip

[John Newbold]

Investment Info:

Single-family residence fix & flip investment in Mission.

Purchase price: $160,000
Cash invested: $40,000
Sale price: $245,000

1955 SFR 3 BR/1.5 Bath, unfinished basement, large yard, beautiful established neighborhood near several great shopping/entertainment spots

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

I had already flipped a couple places in Seattle previous to moving to KC.

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

A RE agent brought it to us when he discovered we were looking for a flip.

How did you finance this deal?

203k

How did you add value to the deal?

Exterior: new roof, landscaping, and paint. Interior: new concrete garage floor, refurbished wood floors, paint, gutted bathrooms/kitchen, added bathroom shower, doubled all BR closet space, removed kitchen walls for open concept w/ dining/living rooms, added cabinets, new appliances, tile floor/back splash, installed dining room french doors onto a new deck w/ refurbished original stone patio. Basement: added family room, office, storage, full bath, 4th BR w/egress.

What was the outcome?

doubled usable sq. footage, went from 3BR/1.5BA to a 4BR/2.5BA

Lessons learned? Challenges?

Always have a budget and always be aware of the ARV. We had to adjust ARV as each development of the 2008 crisis was literally being reported each day. Initially, we relied on RE agent's neighborhood comp assessment for our ARV. But quickly learned that reality was changing faster than we had ever seen.