Flip in Toledo OH Suburb

[Chad Boyers]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $30,000
Cash invested: $74,000
Sale price: $132,500

Bought this home from a private seller, was her mom's home. Needed a total gut rehab. Ripped out the kitchen and bathroom, as well as LR & DR paneled walls. There was a strange built in shelf in the LR that we eliminated, which allowed for the bathroom to be enlarged by 3 feet. We opened the walls from the LR into DR and DR in to kitchen for a more open flow. All new flooring, paint, light fixtures, doors & trim. Brand new bathroom and kitchen (w/ SS appliances). New concrete driveway and A/C. Since the existing laundry area was quite large, we were able to add a half bath as well.

The biggest issue we had (learning experience!) was with the crawlspace. We knew there was some work that would be needed based on some uneven flooring, but didn't realize the extent until after the purchase. It ended up being $15,000 of repair work when all was said and done. Also, the work was not fully completed/done correctly, which caused two sales to fall through. Thankfully, once the owner of the foundation company got involved, everything was done correctly.

Thankfully, we still made some money on this flip, but it was definitely less than I had originally planned on!

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

Potential for good profit margin

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

Private seller, needed to get rid of her mother's home

How did you finance this deal?

Cash

How did you add value to the deal?

Full rehab

What was the outcome?

Sold for a mediocre profit

Lessons learned? Challenges?

Get a full inspection done, even if you think you know all of the issues with a property

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

Me!