Smokin' Deal in CB SFR

[Owen Dashner]

Investment Info:

Single-family residence fix & flip investment in Council Bluffs.

Purchase price: $130,000
Cash invested: $22,000
Sale price: $220,000

This was a smoky, cosmetically distressed single family home built in the 90's in an older (but good) area of Council Bluffs. The seller was having health problems, could not afford to make the necessary repairs to the house, and needed to sell quickly, as-is.

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

Good area, mainly needing cosmetic updates with good upside potential.

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

The seller searched for "sell my house in Omaha fast" and found our website. We gave him close to his asking price since it left plenty of room for good margins.

How did you finance this deal?

We used our line of credit.

How did you add value to the deal?

We had to use 3 coats of Kilz to neutralize the smoke smell, replaced all the carpet, new granite in the kitchen and bath, new appliances and flooring, new fixtures and switches/plugs, and a little drywall work.

What was the outcome?

After closing costs, interest and commish, we will make around $60,000 profit. We had 6 showings the first day and accepted an offer $10K over asking price.

Lessons learned? Challenges?

Don't forget about appliance lead time and delivery/install challenges. It has become routinely challenging to get appliances ordered, delivered and installed in a timely manner due to supply chain and labor shortages. I spaced off ordering appliances and cost us a week of market time.

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

Jay Kathol with Berkshire was our agent and did a good job negotiating, getting us some extra profit.