Investment Info:
Single-family residence fix & flip investment.
Purchase price: $167,000
Cash invested: $10,000
Sale price: $205,000
This was kept as my primary residence while we fixed it up. Almost all of the work was DIY. I kept the cost of materials low and focused mainly on the lower level with as handful of updates upstairs. Strategy there, focus on what they see first, as this determines if they love the home. This home had multiple offers on its first and only day of showings.
What made you interested in investing in this type of deal?
I liked that this home was move in ready and livable while we made the updates. Yes, I would cringe each time I saw the pink countertops but it wasn't uncomfortable to live in. I knew the updates would be pretty simple, with the flooring and the countertops being the biggest expense.
How did you find this deal and how did you negotiate it?
I used a realtor
How did you finance this deal?
FHA Loan and 5% down. Seller paid closing costs.
How did you add value to the deal?
In the living area we updated the flooring, painted the door and updated the hardware, changed out the trim to a wider white trim and painted the fireplace mantle. In the kitchen, I painted the cabinets, changed out hardware and some of the lighting fixtures, changed out the countertops to an updated laminate, painted the grout in the floor tile, added a subway tile backsplash, added some height and crown molding above the cabinets to give the appearance of tall cabinets.
What was the outcome?
$16,000 profit after Realtor was paid.
Lessons learned? Challenges?
Lots of lessons learned but here's one...I intended on completely replacing the tile in the kitchen. Upon inspection we noticed that the previous owner had laid the tile on top of the old floor. It was going to be a mess to tear up and replace so I decided to paint the grout that was there and leave it. The paint really freshened it up!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes. Jennifer Wernert, Realtor.
