District 66 Time Capsule Flip

[Owen Dashner]

Investment Info:

Single-family residence fix & flip investment in Omaha.

Purchase price: $115,000
Cash invested: $32,000
Sale price: $198,000

Contributors:
Angela Thiel, Brandon Tauber

This was a PPC lead from a couple whose father was recently moved into assisted living and they were looking to sell as-is. The house is a starter in a sought-after subdivision in District 66 in Omaha. The house was extremely well maintained, it was just very dated. We updated the plumbing and electrical, gutted the kitchen and bathroom, refinished the amazing oak floors, added new hardware and lighting, and painted inside and out.

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

Well maintained, but dated Grandma/Grandpa houses are my favorite flips. Almost all of your dollars go into cosmetics.

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

This was a PPC lead that came in, we met with the seller's daughter and her husband. We formed a good rapport and walked them backwards through their different options of selling the house and what the potential pros/cons would be. In the end, they really trusted that we would do the right thing with the house and understood that it would take quite a bit of work, but would leave us with a good profit.

How did you finance this deal?

We bought using our trusty 5 Points Bank line of credit.

How did you add value to the deal?

We remodeled the kitchen and bath, new lighting and hardware, refinished hardwoods, replaced the fuse box with a panel, replaced galvanized lines, painted throughout and partially finished the basement.

What was the outcome?

The finished product turned out awesome and we sold it to one of the first showing buyers for $9,000 over asking price. Our agent negotiated really well, so she gets a nice bonus on top (thanks Angie!). We will end up with a profit of around $40K.

Lessons learned? Challenges?

The project took a little longer than anticipated, but we are very happy with the results.