Old Lyme, CT Raised Ranch Flip

[William Conrad]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $160,000
Cash invested: $220,000
Sale price: $459,000

Finally finished my first flip. Bought this raised ranch directly from a trust for cash in May. New everything--roof, HVAC, kitchen, refinished floors. Converted two half baths to full baths. Refinished basement to 4th bedroom or den/tv room.

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

Had the rare opportunity to buy an undervalued property directly from a trust, so couldn't pass it up.

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

I found it through a friend who knew the owners.

How did you finance this deal?

All cash.

How did you add value to the deal?

Converting 1/2 baths to full baths. Opening up the kitchen. Creating 4th bedroom in the basement.

What was the outcome?

Ended up doing ok on it. But even with a great deal like this one, I learned it's tough to make money. Buying a fully marketed house and trying to flip it seems tough right now. I was also afraid it might not appraise, but luckily it did.

Lessons learned? Challenges?

Make friends with inspectors. Get them involved early. Have all your permits buttoned up. And if it's a non cit water/sewer home, know exactly where your septic is and what kind of shape it is in. If at all possible, salvage your existing deck. Deck approvals are a pain and if you rip one down, make sure it is far enough from your existing septic. If it's not, you may have to move your septic or have a tiny deck. A real headache.