Investment Info:
Single-family residence fix & flip investment.
Purchase price: $267,000
Cash invested: $250,000
Sale price: $629,900
3b/1.5ba 2,500 sq ft single family home on .24 acres turned into a 4/2.5 with a big master suite, open kitchen/living, large laundry room and 600 sq ft half wrap around deck.
What made you interested in investing in this type of deal?
This property was an undertaking! I found this beat up house in a ridiculously nice hillside location. It overlooked a grassy valley spanning hundreds of feet while being just minutes to downtown. This location meant a fairly high ARV.
How did you find this deal and how did you negotiate it?
MLS. Offered full price cash offer with inspection contingency and talked them down $24,000 after inspection.
How did you finance this deal?
Personal Lender.
How did you add value to the deal?
I ripped this thing down to the studs, rewired nearly the whole house, upgraded from baseboard heaters to a full HVAC system, completely changed the floor plan adding a master suite, 1 bedroom, 1-1/2 baths and a 600 sq ft raised timber deck overlooking the valley, and I had to completely scrape tons of foilage and re-concrete the driveway/entrance (the list goes on and on).
What was the outcome?
I was extremely happy with how it came out! It was on the market for 2 days with the buyer making a full price offer after just seeing the MLS photos!
Lessons learned? Challenges?
I went over budget (and way overtime) due to constantly adding more and more to the renovation. In the future I would want to nearly double profits for this much time and work so it wasn't a huge success on paper. The bright side is I learned a ton on this project, also, the quality of work led to my renovation company doing multiple renovation/add on jobs for neighbors!
