Investment Info:
Single-family residence fix & flip investment in Lake Forest.
Purchase price: $181,500
Cash invested: $11,000
Sale price: $525,000
First purchase was a 1300 sq ft. townhome, 3 bd, 2.5 ba in great area close to a primary school. We remodeled in 2003 with an outdoor entertainment area ($5000), porcelain tile entire downstairs and carpet in bedrooms ($3000), The custom master bath was a selling point with dual shower heads and tall glass doors ($3000). We hired individual contractors in their specialty areas, Some work done was done by hubby and I (popcorn ceilings removal and paint).
What made you interested in investing in this type of deal?
I was interested in design materials and could visualize the improvements. It was a good time to sell to maximize profits. I loved the neighborhood and proximity of the quality schools. This was a small home surrounded by large homes making it great for families.
How did you find this deal and how did you negotiate it?
Visited many neighborhoods with a 150-170k budget in mind. Real estate helped us negotiate, and counter.
How did you finance this deal?
30 year fixed, with initial money investment of 17K from jobs. Saved money for projects and took them one at a time over a 6 month period.
How did you add value to the deal?
Living in it as a primary residence, then the upgrading with better finishes.
What was the outcome?
Profit to purchase a larger home and take time off work.
Lessons learned? Challenges?
Always put away your liquor.....ha ha! One of our contractors drank away one of my bottles of brandy. Be observant of all of the work at all times. Visit several showrooms to get design ideas that will give that custom look and feel. It can be achieved by simple touches as tone on tone paint, turning tiles a non-traditional way. Try swatches of paint on the wall because lighting is different in each room.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
OrelAnn in San Juan Capistrano, CA
