How to make a Million Dollars On One Flip:
Step 1- Identify property and use imagination. You have to use imagination because you want a property no one else wants. Otherwise, you overpay. Let’s use our current listing at 5337 E. Thunderbird in Scottsdale’s Magic 85254 zip code. Let’s talk Pro’s and Cons and why no one else sees the opportunity. The pros are an over 36,000 sf irrigated lot in Sunburst Farms where some remodels are selling for 1.5 million and more. The cons are a small home, 1837 sf, and Thunderbird is a well trafficked busy street.
Step 2 – Create a plan. In this case, here is an idea. Buy the property and immediately fill it with nice but used furniture. Think OfferUp.com. Then put the house on Airbnb or VRBO for the next 6 months. Think Superbowl, Golf, Arabian Horse Show, etc. You could probably generate $60,000 to $80,000 in income and all you have to do is schedule the cleaners.
Step 3 – Add value. Why don’t you build a 1200 sf, 2 Br, 2Ba, guest house on that huge lot. Get it done by Christmas and you can VRBO it for the Superbowl etc. Now you have another $40,000 and more like 3000 s.f.
Step 4 – Add more value. When things slow down in April, begin the 1000 sf addition to the main house plus adding a 3 car garage. 400 sf of the addition is already under roof where the existing 2 car garage is located. When you are done, you have a 4 or 5 BR, 3 bath home with a guesthouse, totaling over 4,000 sf in Sunburst Farms.
Step 5 – Cash in. Now it is June or July 2023, Prices per square foot are back up to $500/sf and you price your investment at a cool $2,000,000. By then you probably have $1,000,000 in it after rental income and you’ve made a Million Dollars On One Flip.