Investment Info:
Single-family residence fix & flip investment.
Purchase price: $100,000
Cash invested: $35,000
Sale price: $265,000
Turned this abandoned 2/1 with an attached garage to a 3/2.
What made you interested in investing in this type of deal?
I was totally interested in this deal because the home was dirt cheap in an area primed for a major upswing.
How did you find this deal and how did you negotiate it?
This home was purchased from a trust that had a difficult time selling the property. Most general rehabbers stayed away from this home because the foundation was so badly damaged. It is a pier-beam home that caved-in at the center of the house!
How did you finance this deal?
Used hard money.
How did you add value to the deal?
The value was added to this home by converting what was already a "third" garage into an extra bedroom/bathroom and re-building the old attached garage and back driveway.
What was the outcome?
Home was sold before it even hit the market. Home was a huge comp for any rehabbers in a two-mile radius!
Lessons learned? Challenges?
Lessons learned: Understand the true rehab cost when evaluating abandoned homes. Lots of extras from a typical rehab that weren't considered (i.e.: new surveys, higher permit fees, gas undergrounds).
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Judy Rojak - Realtor.
