All Forum Posts by: Michael Klingerman

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $1,275,000
Cash invested: $275,000
Sale price: $1,775,000

1954 Mid-century modern. 4 bed, 4 bath. 2671 sqft house on 28750 sqft wooded lot

What made you interested in investing in this type of deal?

Great location and amazing original house that was well cared for but still had room for improvement.

How did you find this deal and how did you negotiate it?

Our local realtor

How did you finance this deal?

20% down and conventional loan on the rest. Personal reserves to start renovations then got a HELOC to finish.

How did you add value to the deal?

The back yard was wooded and heavily overgrown so we cleared scrub brush and overgrowth then added a pool, grassy lawn and outdoor kitchen amongst the mature trees. Cleared overgrowth in front too then added new floating concrete pads as the approach to the front door. Redesign/remodel the kitchen with new island in place of demoed wall, new cabinets, countertops, appliances and added skylights. Redesign/remodel primary bath. Refinished floors. General paint throughout interior and exterior

What was the outcome?

The house was well received with multiple offers going a little over asking.

Lessons learned? Challenges?

We finished and sold during the 2008 market crash which caused stress and concern but we luckily found buyers and were still able to make money.

Thanks Abbey! We were happy and kinda surprised that he (with some help) was able to hold up his end of the contingency because it was so much stuff. Plus the hoarding disorder could've made it impossible to let things go. Many areas and rooms were completely full when we toured the house so in a way it was like Xmas morning when we took possession... it was our first opportunity to really see everything. It turned out to be better than expected so we had a great starting point. Pretty exciting day 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $425,000
Cash invested: $180,000
Sale price: $1,000,000

1920's Spanish, 3+2 (one full, one 3/4), 1900 sqft house, 7000 sqft lot. It was a very neglected house but solid with a good starting point once it was cleared out and cleaned... unfortunately the previous owner had interior and exterior hoarding issues.

What made you interested in investing in this type of deal?

I come from a construction and design background. My wife comes from a decorating and interior design background. We thought fix/flip type investing was our best chance at success

How did you find this deal and how did you negotiate it?

Found and negotiated with help from a local realtor

How did you finance this deal?

We put 10% down and got a conventional loan for the rest. We immediately put in sweat equity and with some appreciation we were eventually able to get a HELOC to finance the biggest aspects of the renovation.

How did you add value to the deal?

It was a sloped lot and the original home had a garage underneath the house. In the 20's Spanish style, we converted that space along with the other lower level storage areas into a new family room, bedroom, full bathroom and laundry room adding about 700 sqft by connecting those renovated lower areas to the original floor plan with new interior stairs . We updated the electrical, remodeled the kitchen and all exterior space/landscape. There was a detached garage we had to demo and rebuild.

What was the outcome?

We benefited from a growing market and growing area but the finished project was very well received and we thankfully sold quickly for over our asking price. Overall it took us a little longer than expected but luckily it was also our primary residence so that didn't kill us.

Lessons learned? Challenges?

Things can get prolonged. Surprises happen and some delays are not in my control. Using local lumber yards and hardware stores was something I felt good about but it cost us a lot more money... happy it worked out on this one but unfortunately it may not always be possible to use neighborhood type vendors. I still try