Investment Info:
Single-family residence fix & flip investment.
Purchase price: $650,000
Cash invested: $232,000
1631 Babero Ave. San Jose CA
We purchased a small post WW2 house with a weird layout and freaking tiny rooms off market.
This property is on the low end of the Willow Glen market at $650,000.00.
The original footprint was Bedrooms 4 and 1 bath with 1100 sqft. You could reach across and touch the walls in two of the rooms.
We added square footage and did a full gut job down to the studs with new mechanicals, bathrooms, kitchen, etc.
The we added 400 sqft and combined 2 tiny bedrooms into one master bedroom with full master bath. The new footprint came out to 1505 sqft.
The total project took us longer because the city of San Jose shut down during corona and even after they opened up again they were running behind still. The project was very straight forward and the only downsides were the delays due to the city.
We purchased it at the end of Sept of 2019 for $650,000 and successfully sold it for $1,230,000.00 in Oct 2020. We received multiple offers all above asking price.
Message me if you ever need help with a project, a partner to build it out, or just any real estate questions you have!
What made you interested in investing in this type of deal?
We Love buying the ugliest and most torn up houses. We've bought fire damaged, water damaged, tenants refusing to leave, and foundation damaged houses and land. Send us any project and we can buy it.
How did you add value to the deal?
We changed the layout from a 4 bed and 1 bath to 3 bedrooms and 2 baths. We created a master suite that didn't exist. We added 400+ sqft to the house with permits.
What was the outcome?
We received multiple offers all above asking price.
Lessons learned? Challenges?
The city of San Jose is very slow and most cities will be slower for the next couple months or the rest of the year when it comes to permitting.
