Riverwest Fix and Flip

[Emily L. Wiersema]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $78,000
Cash invested: $115,000
Sale price: $250,000

I bought this 1890 home in September and it needed SO much work. I replaced the entire exterior including roof, soffit, fascia, gutters and siding and some windows. On the inside I completely gutted the bathrooms, turning a half bath into a master retreat. Additionally, I refinished the hardword floors, added new flooring in the kitchen, new carpet, refinished the kitchen cabinets, made over the pantry, new light fixtures, new countertops and kitchen fixtures and appliances. The basement also needed a lot of work with a new sump pump and drain tile. It was such a labor of love and I'm really proud how it turned out!

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

I’ve always been interested in real estate investing and flipping. The purchase price made this large project too good to pass up and provided a lot of areas of renovation to learn.

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

I found this deal on the MLS, I offered full asking, and was able to negotiate 2k off during the inspection.

How did you finance this deal?

I financed this deal with a renovation loan

How did you add value to the deal?

I added value by a complete exterior renovation, cosmetic upgrades, bringing the basement up to safety levels as well as turning a half bath into a full.

What was the outcome?

The house sold the first day on the market and I profited approximately $15k after all expenses and reimbursements were made.

Lessons learned? Challenges?

I learned a lot about project management and using multiple contractors. I’d likely stick with just a GC in the future and let them a age any subs that are not doing a good job. I also learned about how to account for carrying costs better…I did not originally have utilities accounted for and they added up over 6 months…also mortgage payments while your buyers offer is processing.

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

My agent, lender and some contractors were excellent. Caitlin Nankee at Shorewest Realtors, Loan Depot and Abacus Construction.