DESIGN POINT
RENOVATION ROCKSTAR
THE NUMBERS:
PURCHASE PRICE...................................................... REHAB AND HOLDING COSTS................................... TIMELINE............................................................... ESTIMATED ARV......................................................... SALES PRICE........................................................... TOTAL PROFIT..............................................................
~$91,500 ~$104,000 10 MONTHS $240,000 ~$250,000 $53,750
BEFORE
AFTER
STAIRCASE BEFORE
3 bedrooms
3 bedrooms
3.5 bathrooms
2.5 bathrooms
Open concept main level, fully finished basement, master suite with walk-in closet and bath
Very few walls, fixtures, or interior architecture
AFTER
Renovation Rockstar: First-TimeTownhouse Success TWO NEW INVESTORS FIND BIG RETURNS IN A BURGLARIZED, FLOODED TOWNHOME. The exterior of the townhome did not need a great deal of work, but the inside was another story. The investors added fresh paint and minor landscaping when they put the property on the market.
by Carole VanSickle Ellis
W
shape even though it was built in 2004.” Although the townhome did not require any structural work, the two investors had a big job cut out for them. “The previous owner had combined two upstairs bath- rooms into one big master bath. At some point after the bank took the house back, the copper was stolen. The house had been completely stripped of sheet rock in the basement and elsewhere prior to purchase. Somewhere along the line, the house also flooded,” recalled Lipsitz.
hen Jason Lipsitz and his business partner, Lee Fondiller,
Nevertheless, the partners got to work repairing the property. “We knew we needed to work fast because the Mary- land market is extremely hot,” observed Lipsitz. “When we put the home on the market, we had an offer almost immedi- ately, although that offer was rescinded when the buyer learned the neighbor had several cats. We put the house back on the market and received multiple above- list-price offers in the next 48 hours, so it was a good experience for our first deal!”
co-owners of South Hill Homes, got a first glance at their very first fix-and- flip deal, they realized that they were in for some serious work. Fortunately, that work came with some pretty serious returns, as well. “We got the lead from our mentor, Craig Fuhr of FLIPClub,” said Lipsitz. “The house was an REO that had been purchased at a foreclo- sure auction, and it was in pretty rough
BASEMENT LIVING AREA BEFORE
The interior of the house had been burglarized, flooded, and scavenged. In addition to the previous owner’s unusual renovations to the third-floor bathrooms (see pg. 19 for details), the investors had to deal with stolen copper, completely demolished sheetrock, and water damage. The entire interior of the home had to be redone.
NEARLY EVERYTHING IN THE PROPERTY HAD TO BE REPLACED AFTER VANDALS TORE THROUGH THE PROPERTY.
16 | think realty magazine :: may 2018
thinkrealty . com | 17
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