My first SFH Fix and Flip

5 Replies

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $209,000
Cash invested: $60,000
Sale price: $325,000

What made you interested in investing in this type of deal?

There were some recent flips in the area that I already new were similar to this property.

How did you find this deal and how did you negotiate it?

I found this deal through a wholesaler who brought it to me asking for $225,000. I found that when I estimated my rehab numbers and holding costs that to make the deal work for me I needed it for $15k less. I was able to negotiate the deal down to a purchase price of $209,000

How did you finance this deal?

Hard money for 80% of the purchase price + all rehab costs and private money investor for the remaining 20% down plus holding costs.

How did you add value to the deal?

- Both bathrooms brand new top to bottom
- New flooring and painting throughout the whole house
- Updated kitchen with custom island and all new appliances, granite countertops
- New lighting fixtures
- Opened up the floor plan, etc...

What was the outcome?

We went over our rehab budget by about $5k. Total net on the project was about $35,000... Success!

Lessons learned? Challenges?

Lesson: Account for at least 10% contingency in your rehab budget for unknowns. When we went to put new flooring in we saw that we needed to redo all the sub-flooring as well which added a few thousand.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

- Branco Theis was the realtor that sold the property after completion. Highly recommend him in the Raleigh/Durham area.
- HouseMax Funding was the hard money lender I used and I actually found them through this website. Very easy to work with especially for beginners.

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