Investment Info:
Single-family residence fix & flip investment in Lakeland.
Purchase price: $100,000
Cash invested: $40,000
Sale price: $319,000
This is was my personal residence. The renovation consisted of all new interior and exterior paint, removal of popcorn ceiling, complete floor removal and install, complete kitchen remodel which included a wall removal and converting half of a closet into a pantry, complete master bath remodel, 2/3 remodel on guest bath, All new interior doors and hardware, new front door and hardware, new lighting fixtures, new landscaping, new paint for patio and front sidewalk, and pressure washed driveway.
What made you interested in investing in this type of deal?
I've always wanted to renovate and flip houses. This seemed to be the perfect opportunity to get started on that journey.
How did you find this deal and how did you negotiate it?
It was my personal residence. My wife and I were planning on selling but I actually had to negotiate with my wife on letting me renovate the home, instead of just selling it as is. I created a presentation and presented to my wife what I would be doing and how it would be beneficial to us in the short and long term.
How did you finance this deal?
Part personal cash and private money lender.
How did you add value to the deal?
The biggest value add were the full kitchen with taking out a wall to open it and adding a pantry, Tearing up the old tile and vinyl and laying new luxury vinyl water proof floors with beautiful tile in the laundry and bathroom, and also the full primary bath remodel with adding a standing shower, and the new exterior paint and landscaping. The small details of finish choices, landscaping & staging really tied everything together to bring a home on the market that really stood out.
What was the outcome?
I sold the home for $319,000 in 8 days for the highest $/sq. ft and first home to sell over $300k in the neighborhood. As is value before renovation was around $260k before the market shifted, which is when I could have sold the home. However, I wanted to learn how to renovate a house, so the outcome of going through the process of and completing a full renovation was worth way more to me than what we gained from the sell. Although what we gained in value was really great as well.
Lessons learned? Challenges?
Vet your GC's more. Use a construction contract to outline when work is to be completed and consequences if they are not met or bonuses if they are met.
Treat your crews with respect and be strait forward and honest with them. I no longer will be using the GC, but the head of the crew that completed the renovation has become a great asset to me and business as a real estate agent and investor. I've learned that if you treat people right, you will always get a return in some way.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No, I am a real estate agent and part of the renovation was funded by a close friend.
