Sometimes, the best real estate deals don’t come from MLS alerts or pocket listings—they come from simply paying attention. That’s exactly how one savvy investor found a property in his own neighborhood and turned it into a six-figure profit opportunity.
The Deal: A Hidden Gem Next Door
While walking his dog, this investor noticed a property that was clearly in distress. The house was run-down, neglected, and easy to overlook. Most people would have walked by without a second thought. Instead, he knocked on the door, started a conversation, and within three months was under contract to buy the home.
The purchase price? $1.8 million.
It wasn’t a small investment, but he knew the numbers had potential.
The Renovation Plan
The original property was a modest 2,000-square-foot home. The investor’s plan wasn’t to tear it down or overbuild—it was to maximize its value through smart renovations.
Here’s what he’s doing:
- Full interior renovation
- Expanding the layout into a 4-bedroom, 2.5-bath home
- High-quality finishes to appeal to today’s buyer pool
The renovation budget is about $200,000, and with holding costs and closing fees factored in, his all-in cost will total approximately $2.2 million.
The Projected Profit
With the improvements, comparable sales in the area support an after-repair value (ARV) of around $2.5 million. That positions him for a projected profit of $300,000—all from spotting an opportunity most people would have missed.
Key Takeaways for Investors
- Opportunities are everywhere. Don’t underestimate what you might discover in your own neighborhood.
- Numbers matter more than appearances. A distressed property in the right location can become a high-value flip.
- All-in costs should guide your decisions. Always factor in not just the purchase and renovation, but also holding and closing costs.
Need Funding for Your Next Flip?
This deal wouldn’t be possible without the right financing strategy. If you’re planning your own fix-and-flip, new construction, or even rental investment, having quick access to capital is essential.
