Neighborhood Fix and Flip
The recent housing data for the Northwest market has focused on low inventory and climbing prices. For investors this has meant having to get creative and work hard to find opportunities. Recommendations have included finding off-market properties or hitting the auctions. However, a recent fix & flip in Kirkland, is a reminder that a listing in the good old MLS can still present real potential for the savvy investor.
Kris Conover, a realtor with John L. Scott discovered a Kirkland gem via MLS. Kris, who also operates Sequoia Homes and Development is a savvy investor. With his knowledge of the current market and this Kirkland neighborhood, Kris recognized that this project could turn a profit. He brought his project plan and funding needs to Veristone and arranged Fix and Flip Loan. The loan included $293K for the purchase of the property, $77K fix-up budget and $15K carrying cost. The total for the Fix and Flip Loan was $385K.
Kris knew that prices in this neighborhood were on the rise and that if the property was upgraded well and brought up to a like-new construction level, he could maximize his profit. With this in mind, the fix-up on this property included a head to toe remodel. The team took the house down to the studs. They preserved what was a virtually new roof and some siding, but everything else was “made new” again. Not only did Kris’s team totally upgrade the structure and interior, they also added all new landscaping. The listing said it all: Sequoia Homes and Development presents fully remodeled CHARMER—100% Head—To—Toe PERFECTION: Brand New High Quality Interiors— New Kitchen, New Baths, New Floors, New Lighting Fixtures all done with Top-of-the-Line Materials & Style! New Roof, New Windows, Bath off Master and Lovely Landscaping
The property is a 4 bedroom, 1.75 Bath, 1,300 square foot single family home.
When the work was done, Kris listed the house for $493,000. After only 8 days on the market, the house sold for $477,500. Kris was all in at $385,000, so this purchase price reflected a gross profit of $92,500.
With help from Veristone Kris was able to move fast, obtain enough funding for the purchase and the rehab and execute a superb and profitable fix and flip.
This deal followed a very traditional strategy. So, yes! … even in this very tight market, if you know the neighborhood and can move fast on funding your property, you can still find winning opportunities in the good old MLS.