Case study: NORFOLK DRIIVE
purchase Price
$420,000
Sale Price
$620,000
Investor ROI
42.8%
Property Overview
2921 NORFOLK DRIVE
Austin, TX 78745 | 1,404 sqft | 3 BD | 2 BA
Located 20 minutes from downtown in a highly-desirable neighborhood, this single-family home presented a strong opportunity for value creation through thoughtful design and renovation. Acquired below market value, the property offered solid structural bones and a beautiful open layout, making it an ideal candidate for a transformation with a strong return potential.
The remodel focused on elevating the home’s livability and aesthetic through modern, cost-effective updates. New flooring was installed throughout, the kitchen layout was modified, bathrooms were refreshed with contemporary finishes, and the entire home—inside and out—received a fresh coat of paint to bring warmth, cohesion, and curb appeal.
The Strategy
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Location — An established South Austin neighborhood only 15-20 minutes to downtown broadened appeal to larger segment of buyers.
Investment Potential — At $420K purchase price, there was strong return potential when compared to other sold properties in the area.
Architectural Potential — The open layout & great pre-existing floor plan provided the ideal foundation for a streamlined renovation.
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Neighborhood — High sale-to-list price ratio for the neighborhood supported return potential.
Market Trends — Steady market appreciation in the area supported a confident investment decision.
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Optimized Layout — A large laundry/mudroom next to the garage and an oversized primary suite located across the house from guest bedrooms provided the optimal layout for buyers.
Large Backyard — Positioned on a quiet street with a large backyard, added features highly valued by local buyers.
Bonus Features — A stone fireplace and a wood beam running across the open living & kitchen area were extra sparks of characters sure to attract buyers.
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Extensive Renovation Scope — Portions of the home were missing drywall and needed substantial structural attention. The spread between purchase price and estimated return hedged potential risk.
General Market Uncertainty — The project’s strong margin along with the market strength in the area and neighborhood provided protection.
Scope of Work
Full Remodel
- Full Kitchen + Appliances
- Flooring
- Drywall
- Interior + Exterior Paint
- Bathroom Remodels
renovation process
Timeline Breakdown
Purchase
Demolition
Renovation
Pre-Market
On-Market
Sell
Budget Breakdown
Renovation Budget: $80,000
Renovation Cost: $80,000
Financial Breakdown
Acquisition
Purchase: $420,000
Acquisition Closing: $16,000
Renovation
Budget:$80,000
Actual: $80,000
Sale Costs
Holding Cost: $15,800
Commission on Sale: $37,200
Staging$2,000
Sale & Closing
Sale Price: $620,000
Closing Costs: $6,200
Profits & ROI
Net Profit: $49,000
Project ROI: 61%
Investor ROI: 42.8%
Property Value Increase: 48%
Investor Breakdown
Investor Contribution
$40,000
Final
returns
+$17,150
