Investment Info:
Single-family residence fix & flip investment in Portland.
Purchase price: $572,000
Cash invested: $200,000
Sale price: $950,000
This was a fun project. It was a great find too. Originally a 3,100 square foot home located on 2 acres, 15 mins from downtown!
There were some massive changes we made to this house. It ended up being about 3,300 square feet all said and done. Changes included:
-Taking what used to be the Master Bedroom, tiny Master Bath, Hall Bath, and second Bedroom, and creating a gorgeous Master Suite with luxurious bathroom and large walk-in closet. We also gained a new Half Bath accessible to the Living areas.
-Took three small Bedrooms (I called them the dorm rooms), and removed some walls to create two larger Bedrooms. Yes, that means we lost a bedroom, but hang on....
-Took a space downstairs that used to be a large workshop, and created a full new secondary suite including another Walk-In Closet, and full Bathroom.
-We took a small Family Room and Kitchen, and combined them for a large gourmet Kitchen with walk-in Pantry.
-Created an awesome walk-in wine cellar with custom wine rack built-ins and double glass doors.
-We really opened up the Living Room, Dining Room, and Kitchen by removing a ton of walls and installing five new massive beams in the attic to carry all the load that the walls were previously carrying. (My guys had a ton of fun installing those beams. Lol)
There was much more to list out, but this was another fun and profitable high-end rehab deal.
What made you interested in investing in this type of deal?
Well, this is what we do: Relatively high-end flips that end up selling around $1M. One of the things that made this especially interesting to me is that it was on 2 acres literally 15 mins to downtown Portland. So it was a very unique property.
How did you find this deal and how did you negotiate it?
It was on the MLS. I don't recall, but I'm certain it had just hit the market. There were a handful of other buyers walking through the house when we were there. All of them talking about remodel ideas. I figured there's no way we would get the house. Generally, when there are a bunch of offers coming in at once, our's is rarely the winning offer. However, much to my surprise, our offer got accepted. Seller mentioned that closing date and no contingencies is what won us the deal!
How did you finance this deal?
Some institutional hard money and private money, plus some of our own cash.
How did you add value to the deal?
Well the house underwent pretty significant floor plan changes. We essentially worked with the space that was there, plus finished out a lower level workshop.
We took the old Master Bedroom, tiny Master Bath, second Bedroom, and Hall Bath, and turned it into a gorgeous Master Suite with an incredible bathroom and large Walk-In Closet. We removed a ton of walls which included installing five massive beams in attic. We converted a workshop into a secondary Suite. And added a gorgeous Wine Room.
What was the outcome?
Sold it, and came out very profitable.
Lessons learned? Challenges?
I learned that not as many people want an acreage property as you may think. I also learned how much a driveway sink hole can sink in one year!
