2,900 SF home with a pool - $385,000 spread

[Henish Pulickal]

Investment Info:

Single-family residence fix & flip investment in Ramona.

Purchase price: $415,000
Cash invested: $200,000
Sale price: $799,900

Home had serious deferred maintenance and the former owner passed away at the kitchen sink, causing a majority of the home to be flooded. I worked with a neighboring business, La Jolla Pools, who took care of the pool and the exterior of the home, and my construction company did the interior. All new everything: HVAC, roof, windows, all interior finishes and pool totally refinished. Home came out beautifully and the property sold immediately at my "ambitious for this neighborhood" list price.

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

Prior experience

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

Probate attorney referred me to the listing agent.

How did you finance this deal?

90% of purchase and 100% of rehab from hard money lender. Equity and holding costs from private investor paid at 12%.

How did you add value to the deal?

Updated everything.

What was the outcome?

Made over $80k net profit.

Lessons learned? Challenges?

Demand is a bit lower in more rural communities like Ramona, but the deal still made good money!