Oak Forest 2
In the summer of 2017, Scott Byer and I embarked on an ambitious venture: we simultaneously closed on two Oak Forest flips located only a block apart. This strategic move allowed us to maximize efficiencies between the two projects. After learning from our first Oak Forest flip that there were greater profit margins in extensions rather than simple remodels, we transformed a modest 2-bedroom, 1-bath property of around 1100 square feet into a spacious 3-bedroom, 2-bath home measuring over 2300 square feet.
This extensive renovation practically turned the project into a new construction. We expanded the back of the house, adding a large dining room, living room, an expansive kitchen, and a primary ensuite.
The looming threat of Hurricane Harvey added a layer of complexity to our real estate investment project. We were concerned about the potential for flood damage to our properties, which were in the middle of extensive renovations. A flood could have destroyed our work, washed away construction materials, and caused severe structural damage. This unexpected natural disaster could have also significantly increased our renovation costs and delayed our timeline.
But we were not just worried about the financial implications. Our concern extended to the wider community that was bracing for the hurricane. Many residents in the Oak Forest neighborhood, like in many parts of Texas, were facing the potential loss of their homes and displacement.
Despite these worries, we were committed to our real estate investment and the Oak Forest community. We took precautions where we could, securing construction materials and reinforcing structures as best as we could in anticipation of the storm.
Miraculously, our properties escaped the flooding, and we managed to complete the renovations as planned. This experience underscored the unpredictable challenges that can arise in real estate investing and the importance of resilience and community in overcoming these obstacles.
However, the real challenges didn't start until we were under contract.
The prospective buyer had a list of requests, including the addition of a wine fridge and a relocated microwave. While these changes weren't exhaustive, they did require extra carpentry and a new appliance, leading to unexpected expenses.
The transaction was fairly smooth through the inspection process, but our closing day was repeatedly rescheduled. Even on the day of closing, while I was preparing to sign, the process was abruptly cancelled. It transpired that the buyer's purchase was contingent on the sale of another property, a detail that had not been disclosed during our negotiations. The buyer was finalizing a divorce, and the sale of a shared property was part of their settlement. After some back-and-forth with the realtor and additional escrow money brought to the table, the home finally closed and funded, marking our largest profit from a side gig yet.
It was during this project that Scott Byer and I made a pivotal family decision: I would quit my W2 job and focus full-time on our real estate investing.
