Investment Info:
Single-family residence fix & flip investment.
Purchase price: $180,100
Cash invested: $35,000
Sale price: $235,000
3,610 sq. ft.
2-story colonial style
5 bedrooms
2 full, 2 half baths
This spacious, move-in ready 2 story is located in a family-friendly neighborhood, on a quiet cul-de-sac, close to Kennedy High School, Transamerica, shopping, downtown, and Interstate 380. There is plenty of space for your family with 5 bedrooms, 2 family rooms, a living room, and a formal dining room. The main level has carpet and stone floors, with a formal dining room, living room, and a family room featuring a fireplace. The family room overlooks the backyard and woods with wildlife galore. Also on the main level are a half bath and laundry. The kitchen features a full suite of appliances, stone floors, high-resolution laminate counters, tiled back splash, pantry and breakfast bar. All appliances stay with the home. This includes the gas stove/oven, microwave, dishwasher, garbage disposal, large french door refrigerator, and washer/dryer. The master bedroom is located on the upper level and features carpet floors and a large walk-in closet. The attached master bath includes stone floors, solid surface counters, and Tub/Shower Combo. The Upper level includes 3 additional spacious bedrooms and an additional full bath. The finished walkout lower level features another family room, a storage room, and a bedroom with half bath. Outside you'll find a three seasons porch and patio overlooking the yard with chain link fence and mature trees that provide beautiful views in autumn and wonderful cooling shade in summer.
What made you interested in investing in this type of deal?
This was on a short list of properties that I had been monitoring as a distressed property. I was fortunate to take advantage of a $30K price drop on the morning that the listing price decreased.
How did you find this deal and how did you negotiate it?
I found this through the MLS.
How did you finance this deal?
A local bank structured this as a construction loan with 0% down based on the improved value of the home.
How did you add value to the deal?
The largest expense was replacing a large retaining wall across the back of the property. Not only was the wall replaced, but we pushed back farther and expanded the usable space in the yard by several feet.
What was the outcome?
The property sold for less than the listing price, yet above the projected amount at the beginning of the project. Seasonal factors caused delays in getting the retaining wall done and brought the home to market during a seasonal slow period. These 2 items led to more expensive holding costs. We mitigated some of that cost by renting the home for several months. The renters also provided home security and maintenance during the winter months as well as covered utilities.
