Fix and Flip in Kansas City Suburb

[Nick Pina]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $48,000
Cash invested: $135,000
Sale price: $226,000

We found this deal by driving for dollars and using the deal machine app to send the previous owner a postcard. The homeowner had not lived in the house for 10 years and it was in total disrepair. It was a complete remodel and a huge learning experience but I wouldn't trade it for anything.

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

I live in Liberty and I know that houses in this area sell very quickly. The school district is one of the best in the area and there is a lot of demand for single-family houses.

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

We found it by driving for dollars and using the deal machine app. I have driven every street in Liberty looking for homes to rehab. My partner met the owner at the home and his asking price was pretty reasonable to start. He had not lived in the home for a long time and was very ready to sell.

How did you finance this deal?

We financed the deal with cash.

How did you add value to the deal?

We completely remodeled this home. It had foundation issues, needed a new roof, inside and exterior paint, kitchen remodel, two bathroom remodels, partially finished the basement, new flooring throughout, new HVAC, landscaping, and so much more. This house had almost every problem you can think of and some we didn't see coming. The estimated rehab costs ballooned on us but because we had purchased the home at such a good price we didn't stress too much.

What was the outcome?

My wife and I got Covid in the middle of the rehab and ended up giving it to my contractor as well. I know I am such a nice guy. We had a good number of issues come up throughout the process but it ultimately ended up being our most profitable rehab to date. The price of homes in this area has steadily been increasing and we ended up setting a record in that neighborhood. We had 20 showings and 5 offers over the asking price. We ended up selling for $226,000 and it closed on December 15.

Lessons learned? Challenges?

We learned that having a good contractor is invaluable. Matt Magel is seriously the best contractor in KC. He is honest, reliable and his work is second to none.

The next thing we learned is that you make money when you buy. You have to buy right so that when unforseen issues arise you can take care of them and not lose sleep at night.

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

I'd recommend Matt Magel our contract on this house, Lisa Beckham our real estate agent, and Kiralfy Exteriors.