Investment Info:
Single-family residence fix & flip investment in Cumberland.
Purchase price: $32,000
Cash invested: $43,000
Sale price: $120,000
One story, 1,100 square foot, 2 bedroom, one and half bath bungalow built in 1941. Major renovations including new roof, hardwood floor finishing and repair as well as new kitchen cabinets and bathroom remodel.
What made you interested in investing in this type of deal?
This property was auctioned off at significantly below market value and in a good neighborhood.
How did you find this deal and how did you negotiate it?
The property was advertise on an online auction site. Our final bid was below reserve; however, the bank contacted us for a best offer, which was $2,000 above auction closing price. The bank accepted our final price at $32,000.
How did you finance this deal?
Property financing was through a HELOC.
How did you add value to the deal?
We were able to increase the property value by improving the exterior curb appeal of the house with shutters and front door casement and pediment as well as new kitchen and bath.
What was the outcome?
The house sold received a lot of interest even before the project was completed. We were able to sell the house immediately and without a realtor.
Lessons learned? Challenges?
I learned a lot about how to manage the project and the contractors hired. I learned you must have a contract set up with each sub contractor doing the work. I also learned that spending a few more dollars and hiring the right licensed professional will save you a lot of headaches and time in the future.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No realtors were used to sell the property.
