Deal Analysis: The Myrtle Flip
This project involved the complete renovation of a single-family home in Bloomfield, New Jersey with 3 full floors of living space, plus a basement and outdoor areas.
This home was listed on the MLS for $169,000. In our market, that's low. So we immediately asked to see it, but the property was abruptly pulled off the market.
A few weeks later, it was re-listed for $130,000!
When we finally got in, the selling realtor said someone pretended to own the place and rented it to an unwitting family.
When in fact, the home was bank-owned and without power, water or heat. Nevertheless, the family moved in.
The police were called. The locks were changed. And the realtor re-listed the house at an even deeper discount.
The earlier price did not appear anywhere, so you would have needed to watch the market closely to know the bank originally wanted a higher price. Knowing this information and watching a huge turnout of investors tour the property, we decided to go above asking.
We offered $157,000 and our offer was accepted.
When we purchased the home it was a 3 bedroom, 1 bath.
We transformed it into a 4 bedroom, 2 bath, plus a den.
We did not do any additions. We simply turned a butlers pantry into a bathroom and we finished the walk up attic with closet space to create an additional bedroom and a den.
In addition to refinishing the kitchen, 2nd floor bath and other rooms, we made a huge value-add by going through the zoning process to install a driveway. This house had NO off-street parking prior.
We spent approximately $100,000 on renovations, including materials and labor.
We tracked our materials list using one of my favorite spreadsheets.
I did all the staging myself and our realtor did an excellent job creating a website, complete with photos and a video tour.
He listed it on a Tuesday and we did not allow any showings until the open house on Sunday, which generated a lot of interest.
Our asking price was $369,000. We received multiple offers within a few days of the open house and we sold the property for $385,000.
Factoring in closing, holding and other costs, we walked away with a profit of $85,000.
I would love to answer any and all your questions on this flip in the comments section below!
Here are some more before and after photos.
I purchased a wine cabinet on Facebook for $50 and we converted it to a vanity. You can read more on how I did that here.