Investment Info:
Single-family residence fix & flip investment in North Oaks.
Purchase price: $470,000
Cash invested: $80,000
Currently renovating our own home to eventually flip. It’s a 4 bed 3 bath in a sought after part of the Twin Cities. Built in 1969 and renovated last in 1987. Well built, good bones and layout, so we’re bringing up to date. New kitchen, new bathrooms, repainted throughout, new floors throughout, new doors and trim throughout, new composite decking etc
What made you interested in investing in this type of deal?
It’s a great neighborhood in a good school district with properties starting at around $400k and going up to around $3M. These properties will always have a good demand for them.
How did you find this deal and how did you negotiate it?
We found it on the MLS through our Realtor. We negotiated some money off the asking price, but felt we could've done better looking back.
How did you finance this deal?
A conventional mortgage.
How did you add value to the deal?
We completely renovated all areas of the house as it was last renovated in 1987. We brought it up to date with getting rid of the golden oak, a more modern kitchen and bathrooms etc.
What was the outcome?
The house is valued at somewhere between $560k - $600k.
Lessons learned? Challenges?
This was our first live-in flip in the US, so we’ve learnt a lot. I’d previously done 5 live-in flips in the UK before this and the process is quite different. I learned quickly that Minneapolis tradesmen costs are much higher than in the UK. Buying and selling costs are also much higher. Making it more difficult to make profit. It also took me a little while to gauge what the local market wants in the style and features of their homes.
