Charming cottage Fix and Flip

[Katharine Schmuff]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $47,000
Cash invested: $64,000

This 1915 home was stripped down to studs. All new plumbing, electrical, and HVAC were added.
Originally the home had 2 bedrooms, and one bathroom on the lower level. A third bedroom was added, as well as a second full bath on the second floor.

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

My husband and I own a construction company. Finding distressed properties works really well for us since we don't have to pay a contractor.

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

This house sat on the market for about 6 months before we went and saw it. They took our first offer, no negotiation needed.

How did you finance this deal?

I paid cash for the house, and then used HELOC funds for the renovation.

How did you add value to the deal?

The house was a mess. No heat upstairs, rotted floors, a family of squirrels. Value was added just by doing any sort of renovation.

Lessons learned? Challenges?

The most interesting challenge was found during demo. All the downstairs walls had been insulated with brick and mortar. This made our demo budget double. We had to demo paneling, sheet rock, plaster, and bricks.

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

Our real estate agent was great. Brad Cohen with Harman Realty.