Working On My First Fix-n-Flip!!
I needed a cash infusion into my REI business so I began looking for a Fix-n-Flip opportunity. I found a wonderful 4/2 foreclosure with a private pool in Orlando that needed quite a bit of TLC. When I first walked in it there were a few other people in there shaking their heads saying it needed too much work. I kept my Poker face though because I was seeing mostly cosmetic repairs needed and some updating. It was listed in MLS as a 3-bedroom but is actually a 4-bedroom. Score! It's in a quiet neighborhood that has mature landscaping and even has sidewalks. (You don't realize how nice it is to have sidewalks until you have them in one neighborhood and don't have them in the next) The work started about 2.5 weeks ago and we're still pretty close to where we should be in my 30 day rehab schedule.
I did the tear-out of the cabinets, sinks, and some walls in the kitchen and both bathrooms myself to save money. I got my first battle scar too!! A wood panel with a screw in it sticking straight up went through my shoe and into my foot. (Don't worry, I won't post those photos) But yeah, it took about a week and a half to shake that one off. I'm using some of the contractors I've used on other properties to get the rest of the rehab done. I considered using a GC to coordinate the work but I figure since no permits need to be pulled, no GC is needed. I'll manage it and take whatever may come of it as a learning experience - just hopefully not a costly one.
Here are the numbers:
Goal: Sales Price = $210,000
Purchase - $122,000
Closing Costs - $3535
HML (6 months) - $12,000
Est. Rehab - $30,000
3% Buying Agent Com - $6300
Holding Costs (Taxes, Insurance, Utilities) - $4000
Total Projected Profit = $32,165
I'll be sure to post the Before and After photos and updates when the project is complete in a few weeks from now. Thanks for reading!