Single Family 3/1 home

[Christopher Spear]

Investment Info:

Single-family residence fix & flip investment in Cleveland Heights.

Purchase price: $78,000
Cash invested: $35,000
Sale price: $158,000

This was a 2 story 3/1 home. It already had a new detached 2 car garage and driveway. We removed two 40 yard dumpsters of debris from home. Installed a new kitchen; renovated the full bath on the 2nd floor; added a 1/2 bath on the 1st floor; general remodel/cleanup. Cleaned up the landscaping.

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

I found it off-market. I didn't know any formulas at the time, but the price sounded good. As it turns out, it was almost exactly 50% of ARV, which is what I look for these days!

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

I found it through a friend of a friend. The purchase price was what she needed to satisfy the bank.

How did you finance this deal?

Cash, private money and a local bank construction loan.

How did you add value to the deal?

It already had a new detached 2 car garage and driveway. We removed two 40 yard dumpsters of debris from home. Installed a new kitchen; renovated the full bath on the 2nd floor; added a 1/2 bath on the 1st floor; general remodel/cleanup. Cleaned up the landscaping.

What was the outcome?

My agent found a buyer before he even listed the property. We sold the home to her, paid the private lender and the bank, and walked away with a nice profit.