Ivy Road Renovation. Our first flip in 13 years.
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $87,500
Cash invested: $39,000
Contributors:
Daniel Foster
My husband and I bought a single family house in a quiet neighborhood of Memphis. It has an addition built in the 70's that makes it larger than most in the area. My husband has done most of the work including new kitchen and bath. We added a new roof and updated plumbing, electrical and HVAC with qualified professionals. We hope to make $30,000,
What made you interested in investing in this type of deal?
We have three buy and hold, but want to have some cash free for our next personal home. So, we looked at other strategies. We decided to try a flip. Our first in 13 years.
How did you find this deal and how did you negotiate it?
We had a friend and real estate agent point out the neighborhood and house to us. The house was well overpriced and smelled like cat pee. We offered what we thought we could and still make a profit. We were very worried about the what the ARV would be as this is not out normal neighborhood. The sellers were initially asking $129,000. We offered $85,000 and settled at $87,500.
How did you finance this deal?
We paid cash.
How did you add value to the deal?
We left nothing in the interior untouched. We added new kitchen, baths, walls, paint, flooring, roof, HVAC, electrical update, plumbing... and modern pretty touches. We did not do an industry flip, but made it a place we would live.
What was the outcome?
We are putting it on the market soon. We expect it to sell between $160,000 and $180,000.
Lessons learned? Challenges?
It took A LOT more time than we planned and we aren't rookies. We should have hired out more work, but we were worried about making a profit.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Amy Foster is a great real estate agent for finding deals.