From condemned dump to beautiful SFR in 60 days!

[Debashish Majumder]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $8,000
Cash invested: $45,000

Converted a condemned property into a beautiful SFR in a 60-day flip. I bought this property as part of a twin wholesale deal and off-loaded one of them to a fellow flipper while hanging on to this one. Sat on it for almost a year trying to work up the courage to tackle this massive piece of rework. Finally started in May 2020 (lockdown freed up almost all labor personnel to work on a tight schedule). It was rented before we were finished - tenant moved in middle of July and I just closed refinancing on the property (with zero mortgage mind, you) and took $70K out with a nice cashflow to boot.

This one, I'm really proud of! :-)

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

Taking a chance on a twin investment deal - this is the one I wanted but had to get the other one as a package deal.

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

Wholesaler advertised it - negotiated it down from $25000 to $17500 for both properties.

How did you finance this deal?

Cash bought - zero debt.
Post-flip refinance ARV was pegged at $130,000 - took cashout of $70K

How did you add value to the deal?

Gave it a brand new bathroom, full cosmetic refinance, full walls, floors, appliances, the works

What was the outcome?

I didn't want to sell it because of the location of the property - it was rented within 30 minutes of posting the property - I got a little bidding war going and made out like a bandit with the rent!
Just closed on my cash-out refi on very favorable terms with Mutual of Omaha mortgage with the property being valued at $130K

Lessons learned? Challenges?

Don't sit on a gold mine - MINE IT! I feel like I lost a whole year's worth of rent because I was too afraid to work on a proverbial "dump"!

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

Carrie Majumder (my wife, Real Estate Agent with Keller Williams)
Mutual of Omaha Mortgage (extremely easy process!!)

[JD Martin]

Nice work - what city/state? Any interior pics?