THE POTENTIAL PARTNERS
Amanda and Marty are a young married couple who met as teens and have been together ever since. She’s an educator and he’s a carpenter – but both are “totally obsessed with real estate.” In their early 20’s, they bought their first house. Marty built an income suite for them in the basement, while they rented out the upstairs. All of a sudden, they were homeowners and making money. From that day forward, they were seriously hooked on housing.
THE HOUSE – the 50’s Corner Bungalow
Amanda and Marty just purchased a corner-lot 1950’s bungalow in the very same small-town where Scott got his real estate start. The $300,000 property comes complete with three bedrooms, two full bathrooms, a one-car garage – and a major need for a renovation.
Jessica and Jeremy 28 are a young engaged couple. She’s a teacher while he’s a roofer. Two years ago, they purchased a two-story investment property in a quintessential small town. Last year, Jeremy took on a major renovation, and built a third-story addition on the place. Now that the house is three stories, four bedrooms, and two full bathrooms, it’s time to flip it to make some cash to put towards other investment properties.
THE HOUSE – Century Two- Storey – with walk basement
Jessica and Jeremy purchased this early 1900’s two-storey corner property for $175,000. This large home has 4 bedrooms and two full bathrooms. There is a large fenced-in yard with garage on the property.
Scott chooses to partner with Amanda and Marty and pay for the renovation to the 50’s corner bungalow. The renovation plan consists of installing new hardwood floors throughout the main floor. The kitchen is gutted and a new kitchen is put in. The 3rd bedroom on the main floor is eliminated to expand the size of the bathroom and create a true master bedroom. In the basement all new floors are installed and the a 3rd bedroom is added. Outside, the exterior of the house gets a makeover, landscaping is done and a fence is constructed to create a private yard.
Purchase Price $300,000
Renovation Budget $60,000
Actual Renovation Cost $70,000
Appraisal Value $436,000
Selling Price $435,000
Profit $62,000 = $31,000 for each Scott and the homeowners