Investment Info:
Single-family residence fix & flip investment.
Purchase price: $120,000
Cash invested: $52,000
Sale price: $227,000
This was a single family flip that we bought from a wholesale group in Council Bluffs, IA on Bel Air Drive. We added a mother-in-law suite above the garage with a bathroom, changed the panel, painted throughout (including kitchen cabinets), fixtures, hardware, flooring, replaced the driveway and pad (in back). It ended up selling for over asking price to a VA buyer, which meant several inspection repair requests. It ended up being a win/win with about a $40K profit.
What made you interested in investing in this type of deal?
It fit our criteria well - a consmetic fixer, single family starter home in a desirable school district, under $250K. Love these.
How did you find this deal and how did you negotiate it?
This deal was brought to us by a wholesaler and we paid their asking price.
How did you finance this deal?
Line of credit
How did you add value to the deal?
We did paint, flooring and fixtures throughout, upgraded the electrical, added a mother-in-law suite above the garage with a full bath and en suite, replaced the driveway, added granite counters.
What was the outcome?
We made about $40K after all expenses and sold it quickly to a VA buyer, slightly over asking price.
Lessons learned? Challenges?
I missed the fact that there was no ductwork ran to the mother in law suite until after it had already been drywalled. This meant we had to add a PTAC unit (way more affordable that a mini split or HVAC system) and upgrade the panel to support the load. Whoops.
