Complete rehab in up-and-coming neighborhood

[Steve Simister]

Investment Info:

Single-family residence fix & flip investment in West Valley City.

Purchase price: $168,000
Cash invested: $122,000
Sale price: $281,000

REO property purchased from MLS. Property required a complete gut and rehab. Lengthy hold time due to multiple projects and not having built my contractor team yet, this project was ultimately a loss. However, final project was something I am definitely proud of and enjoyed the process despite the financial loss.

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

I love doing complete rehabs of very distressed properties

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

MLS - REO Property

How did you finance this deal?

Hard Money

How did you add value to the deal?

Complete rehab of entire property including new open-concept layout and kitchen design. Asbestos mitigation,Updated bathrooms and laundry, new flooring, paint, doors/trim, and windows.

What was the outcome?

Financial loss

Lessons learned? Challenges?

Importance of having a project manager and reliable sub-contractors. We didn't have a solid network established at this point and it cost us by substantially increasing our holding and rehab costs.