Investment Info:
Single-family residence fix & flip investment.
Purchase price: $134,000,000
Cash invested: $4,000,000
Sale price: $259,900
3105 SF Craftsman Style home built in 1930. Two story, 3 bed, 2.5 bath with a very large master suite with a sitting area. Two living areas on first floor, formal dining room, large kitchen and laundry room. Two car detached garage. In the historic Governor's Mansion District.
What made you interested in investing in this type of deal?
We love restoring beautiful old homes and improving the neighborhood. Plus, the profit potential was really great going in and turned out to be good on the back end.
How did you find this deal and how did you negotiate it?
This property was an REO so we found it on the MLS.
How did you finance this deal?
This was our first property so we use a hard money lender to finance this deal.
How did you add value to the deal?
We took care to restore a lot of the original beauty to the property while focusing on adding new amenities that buyers looking in this area expect.
What was the outcome?
We ended up with a nice profit on this deal and take pride in this being our first rehab. We still show this one with a great sense of accomplishment andpride.
Lessons learned? Challenges?
We had a few surprised, but nothing out of the ordinary. We had to run a new water line from the meter to the house but that was the only real surprise. Our biggest lesson on this project was that contractor come with a shelf life and they don't always expire at the end of the project. We did finish this project but it was the first, and last, time to use that contractor. Even at that, we had to bring in a different contractor to wrap up a number of the finishing touches.
