Our 1st big renovation
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $65,000
Cash invested: $80,000
Sale price: $240,000
Our first big renovation was a success. We started our construction company and were working on 2 other projects during this large renovation. We eliminated the upstairs because the ceilings were under 7' and couldn't be used as heated sqft, rearranged the floor plan, went through the permitting process and learned how all the trades worked during the process, connected with more contractors, electricians, plumbers, drywall guys, carpenters, investors. Our network was growing and our net worth.
What made you interested in investing in this type of deal?
We didn't know any better at the time. It was a direct from seller deal in a great location that we could force appreciation through renovating.
How did you find this deal and how did you negotiate it?
We have a partnership. One of the wives drove by and saw a for sale by owner. We called, checked out the house, ran the numbers on the Bigger Pockets flip calculator. The numbers worked, we negotiated our best deal, and got it under contract.
How did you finance this deal?
Local hard money lender
How did you add value to the deal?
through renovations
What was the outcome?
We got a full seminar on how to rehab a house from this deal and made money to reinvest.
Lessons learned? Challenges?
Inspector challenges, rehab obstacles, foundation issues to overcome.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes we have a great realtor and hard money lenders in our area I would highly recommend. Reach out for their contacts.
