THE CLEO HOUSE

Going for Bigger and Better

The One with the Pink Carpet (no more)

This month summarized in the life of Refern:

• We closed on our latest property at the beginning of the month and it's been the biggest purchase price yet, with the highest anticipated ARV.

• We named her The Cleo House— Inspired by the former owner, assumably poised and elegant, just like the plush pink carpet in the living area.

• A bit late to the game, but mapped out my business goals and opportunities for 2026.

Underwriting

After doing a walkthrough of this on-market property, another offer had been made well above the purchase price I was willing to offer. At this point, I didn’t spend much time thinking about it, I just moved on and kept searching for the right one. Over a week later, my agent reached out— the previous offer fell through and the seller was willing to entertain my offer price: 80K under asking! Yep, let’s do it.

Property Stats

University Place, WA

3 BD / 2.5 BA, Split Level, 2,330 SF

8,272 SF Lot

Purchase Price: $595,000

Renovation Budget: $90,000

After Repair Value: Minimum $825,000

Some before images:

Leveraging Design

Let’s be honest, there’s a lot of basic split levels in the area—the ‘copy-paste’ type that happened in the 70s—and they aren’t usually the most desirable layout. BUT, this one has the opportunity to stand out in a unique way for a few reasons:

• The property is on a quite dead-end street and it abuts a greenbelt in the back so there’s no properties behind it.

• The double-height living space as you enter has a definite ‘wow factor’ unlike most split levels where you walk into a small stair foyer before going up or down the stairs.

• Even though we’re on an investment budget, I have a few high-impact, low-budget design tricks up my sleeve that will make this home feel extra homey…

For the biggest value add, we'll repurpose a recreation room in the lower level to become a bedroom and convert the 1/2 bath to a 3/4 bath by adding a shower.

What will be the design aesthetic of this house, you ask? We’ll call it minimal modern meets old soul— clean, simple lines and detailing, layered with natural materials like oak and linen, aged metals, and soft lighting. It feels intentional with a few imperfect elements so it doesn’t feel so pristine.

The Year Ahead: Refern Goals and Opportunities

I'm kind of being an open book here and putting these goals out into the universe (accountability, right?!)

• More emphasis on opportunities at the intersection between design and real estate

• Continue flips to leverage relationships and knowledge of Tacoma market: 4 flips resulting in 100K gross profit— this means being more strategic in underwriting. Don't jump on low-margin flips.

• More pointed marketing for flips and design, begin to look at incorporating brand partnerships and affiliate links for possible passive income.

• Self-investment!! Dedicate earnings to education/networking.

• Begin researching hotel investment strategies— could the hotel hunt begin in 2027?!

Cheers to renovating,

refern (aka Rachel)