Our Recent Fix & Flip

Updated: Jan 8, 2021


David and I flipped a single family residence in Parker during September of 2020. The property was owned by an elderly seller who wanted to sell “as is” and was a simple and straightforward cosmetic flip.We considered the flip relatively “low risk” given the price point and market conditions at the time, which included strong appreciation and low interest rates.


The objective of the flip was to purchase at $300K, make $25K in repairs and sell at $350K-$360K, for a net profit around $20K-$30K, split equally between David and I.


The two key contingencies were whether we replaced the roof and whether we could save on paying a buyer agent commission by sourcing the buyer ourselves. Ultimately, we sourced the buyer ourselves and, in doing so, agreed to replace the roof with an impact-resistant product. This was a win-win for both buyers and us.


The flip was typical in all respects, except that the margin (i.e. the difference between purchase and sale prices) was slimmer than a typical investor would require because David and I didn’t have to pay commissions on the sale. The scope of work, timeline, and financials were all within “normal” parameters.




Project Scope


With any flip, the key to profitability is delivering a quality product, while investing in cosmetic items (flooring, paint, fixtures, etc), while limiting investment in areas perceived as being having a lower return on investment (windows, siding, mechanical/plumbing/electrical systems, roofs).


Lucky for us, the property already had newer windows and exterior paint/siding. Based upon our inspection of the property, the flip required high ROI-items of new flooring, interior paint, and a main bathroom renovation. We also decided the flip required low-ROI repair items, including a new roof, new baseboard heating, and electrical repairs.




Financials


Below is a breakdown of how the financials and timeline looked:




Before & After Pictures

Enjoy the below before and afters…


before and after living room - fresh gray paint, new luxury vinyl plank flooring, and white/gray ledgerstone installed around the fireplace during fix and flip renovation
before and after kitchen - fresh gray paint on the walls, new luxury vinyl plank flooring, and new overhead lighting installed during fix and flip renovation
before and after dining room - fresh gray paint on the walls, new luxury vinyl plank flooring, and new overhead lighting installed during fix and flip renovation
before and after bathroom sink and toilet - completely renovated bathroom with new white vanity and sink, brushed chrome hardware, toilet, fresh grey paint on the walls, and new luxury vinyl plank flooring installed during fix and flip renovation
before and after bathroom shower - completely updated with new white shower insert and white subway tile during fix and flip renovation
before and after bedroom - cleaned out, fresh gray paint on the walls, new overhead lighting, and new carpet installed during fix and flip renovation
before and after bedroom - cleaned out, fresh gray paint on the walls, and new carpet installed during fix and flip renovation
before and after basement - cleaned up and ready for finishing during fix and flip renovation
before and after basement - cleaned up and ready for finishing during fix and flip renovation
before and after back yard - cleaned up and bushes removed during fix and flip renovation




Contact Us


While we enjoyed flipping, David and I thought it was more fun as a side venture than full-time business. We love our “day jobs” of assisting clients buy, sell, and invest in properties too much!


Over the span of 2 ½ months, David and I learned an incredible amount about sourcing materials, contractors, and the decision-making process of flipping a property – all things that will assist us with advising our buyer, seller, and investor clients.


If you are interested in partnering or learning more about fix and flips, contact us today at bryan@gerhomes.com.



 

Bryan Zerr is Employing Broker at Greenwood Estates Realty, a boutique brokerage located in the Denver Tech Center. Bryan began investing in real estate as a college freshman at Gonzaga University in 2005 and has remained passionate about all things real estate ever since. Whether it’s a $200K studio apartment or a $1MM+ luxury property, Bryan and Greenwood Estates Realty love providing value through integrity, expertise, and concierge-like service.