Ugly house flip in jungle turned into city urban paradise.

[Paul Meyer]

Investment Info:

Single-family residence fix & flip investment in Richmond.

Purchase price: $37,000
Cash invested: $90,000
Sale price: $238,000

Complete major rehab. Added double dormer bumpout front/back for additional 600sqft. Actually time working on it around 6 months mostly myself with a lot of horrible contractors. First actual flip. I've renovated other properties but just rented them out. Learned a lot about bad termite damage and bringing plans to the city. Basically just use what you got and don't do an addition from my experience. I was fortunate the market went up. It would have likely only sold for $199k.

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

Local auction. Easier than wholesalers that sell higher than retail.

How did you finance this deal?

Cash.

How did you add value to the deal?

Built out double dormers.

What was the outcome?

Made a chunk of change. Paid off some debts.

Lessons learned? Challenges?

Don't fall through the floor. Just hire professionals (if you can). Craigslists guys are all crazy but you make more money.

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

Stager.