Dallas, TX · Member since 2018 · 46 posts · 27 votes
Hello my BP friends!! I am a buy and hold investor that is now transitioning to Fix and Flip. I would like to hear your best success story so far rehabbing as well as a story that you aren't so proud of but you learned alot from.
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
6y
@Jonathan Anderson thankfully most of our flips have gone well. Our "best" from a return perspective was also out smallest profit. But it was all cosmetic, fast turn around on a small, low cost house. I believe we paid $65k, put about $25k in it and sold for $120k. But from close to close, it was barely 3 months, so the IRR was huge.
Worst story was also a house in the "nicest" neighborhood we have flipped in. This is a highly desireable, walkable neighborhood. But we put on an addition, which utlimately went over budget. While we had an engineer in to stamp drawings, we did not do a full inspection of the basement, and there was some damage down there that came up in inspection when we went to sell. We went over timeline, which pushed us to list in fall. Combine that with being on the "wrong end" of a good street, and trying to push the price on list, and we ended up sitting on the market for several months, under contract three times, and took a $40k loss. Ironically, $40k is almost exactly the amount we paid between fees and interest to the hard money lender.