Updated about 5 years ago on . Most recent reply
Vintage Ranch house-hack slow flip
Investment Info:
Single-family residence fix & flip investment in Nashville.
Purchase price: $218,000
Cash invested: $35,000
Sale price: $315,000
Second-home, another house-hack slow flip. This 1970s ranch was mostly original, but the previous owner had done some heavy lifting with new HVAC, roof, and windows. I did all-new kitchen and bathrooms, made a 1/2 bath into a 3/4 bath with an oversized linen closet. Turns out, wood paneling can be a look if you design around it and put enough Old English on it! Funky finishes like Rubio Monocoat white oak hardwood floors, modern tile, modern fixtures, and paint help a lot, too.
What made you interested in investing in this type of deal?
My first home was a successful house-hack slow-flip, so why not do it again?
How did you find this deal and how did you negotiate it?
A family friend had this property listed but hadn't been able to get it sold. I negotiated with her directly and let her real estate agent manage the closing (I don't know if he discounted his commission?). I told her what I could afford and it was enough that she got what she needed. That was $32k less than her list price, and we were both happy.
How did you finance this deal?
I had only been self-employed for about 1.5 years at that point, so I got a commercial loan and refinanced into a conventional 30yr after I filed my taxes and qualified for it. I used a HELOC to cover the cost of the improvements.
What was the outcome?
Multiple offers, sold for $15k over asking. I learned a ton by being my own client acting as the designer, general contractor, and listing agent.
Lessons learned? Challenges?
Commit and love the style you're with. I decided I was going to do a funky retro-modern ranch and make the 40" white vintage stove and wood paneling not just work, but rock. I had never designed in or was particularly in love with that style. Everyone told me to tear out or paint the paneling and replace the appliances. It was terrifying, but the design actually reduced reno cost. The final product was stunning.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Me! And I can recommend the amazing team of lenders at Renasant Bank in Nashville for commercial and residential loans, and HELOC.