The Dennis the Menace Flip

[Katie Dortch]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $154,000
Cash invested: $85,000
Sale price: $335,000

Aptly named, this house was a pain in the rear. Ended up needing way more work than we originally anticipated. We basically had to reframe the entire house. Probably should have been a tear down rebuild.

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

Smaller home, so attainable for a larger majority of buyers. Desirable area in downtown Raleigh. The project fell within the scope of our capabilities and in line with our ideal flip at the time.

How did you finance this deal?

Private investors

How did you add value to the deal?

Reframed the entire home, changed the layout from a 2/1 to 3/2, but preserved some if it's character (kept the original fireplace)

What was the outcome?

At the conclusion of the project, the original buyers backed out due to COVID hitting, so it sat on the market a bit longer than anticipated. Also, we feel that we may have had an easier time selling had we renovated differently.

Lessons learned? Challenges?

Know the end buyer prior to making layout changes. In this area, buyers would have been happy with a well-laid out, more spacious 2 bedroom home.

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

Matt Lees with Brecken and Oaks RE Team