who thought Newark could not be cool?

[Carlos Pelegrina]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $167,000
Cash invested: $187,000
Sale price: $425,000

Contributors:
Kyle Lofland

This project proved to me again the power and value of good design.
In every neighborhood there is someone who dreams with a contemporary cool home, and it can be achieved with any budget.
The house was abandoned for a couple of years, it had a fenced front yard, and a very compartmentalized layout; we opened it, added bathrooms, a suite bedroom, finished attic and basement, we painted dark and picked finishes and amenities not expected for the neighborhood.

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

The price was good and the Location close to South Orange made it appealing

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

Found it in the MLS, and we made a mistake of not negotiating enough

How did you finance this deal?

Hard money, plus some own cash to get it fully done, renovation loan was 75K and we went over it.

How did you add value to the deal?

added bathrooms, making a total of 3, one bedrooms is in suite, created an open plan, contemporary kitchen with a large island, finished attic and basement, added central heating and air, provided amenities people like as fireplace, wine cooler, wine cellar, smart thermostat and key lock, but mostly we created a contemporary home where there are not many

What was the outcome?

It was great to see the reception the home had, we listed it in a hurry with bad pictures, we had 7 offers all above asking.

Lessons learned? Challenges?

Many
I learned to must analyze deeper a deal, don't cut corners with the GC, Good labor is fundamental if you don't want to be on site full time, The money you don't pay to the GC, you will pay it with your own time and energy. Design pays off everywhere, don't underestimate neighborhoods, everybody want a cool home, and its possible to make it under any budget.
Also to install GB, waterproof bathrooms, spray painting, install windows, install tiles, hang doors etc.. didn't want but had to

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

Kyle Lofland is my business partner and the agent. He is a BP member also