Woodward Homes Flip in Belmont
Investment Info:
Single-family residence fix & flip investment in Belmont.
Purchase price: $150,000
Cash invested: $183,300
Sale price: $249,900
This property is in one of the best cities just outside of Charlotte, NC. It is a small quaint city with a lot of character.
What made you interested in investing in this type of deal?
I really enjoy flipping houses because of the instant gratification. I love seeing the fruits of your labor within months as opposed to years. I come from a commercial real estate development/construction back ground and we wouldn't see a finished project for 2-4 years after inception. I love being able to design/build/and provide a home in just a couple months. It is extremely gratifying.
How did you find this deal and how did you negotiate it?
I found this deal through direct mail. It took about 6-8 months from first contact to close. The home was owned by a lovely couple. The wife's mother was the original owner and had passed away, so there was a lot of memories in the home that needed to be dispersed to family members. I could see it was difficult for the woman, so I remained patient. The husband and I went back and forth over the course of a couple months and finally agreed to a price we could both live with.
How did you finance this deal?
I self funded 50% of the deal and received the rest from a private money lender (through a friend).
How did you add value to the deal?
The house's infrastructure or bones were in good shape, and just needed some updating. We demo'd the kitchen and baths, tore up the carpet and removed some wood paneling. Under the carpet was original wood (gold mine), so we refinished it and it looks amazing. We installed a new kitchen (fixtures, appliances, some plumbing upgrades), new baths (wall/floor tile, vanity, fixtures) and paint/minor carpentry.
What was the outcome?
We created a beautiful home for hopefully a beautiful family. The property will go on the market today.
Lessons learned? Challenges?
We went over budget on a couple items that we didn't initially include (some exterior painting, landscaping) these were calculated decisions that added value to the entry sequence of the property. The biggest hit was the well pump was not functioning to the standard we would like so it had to be replaced. This item should have been included in the initial budget due to its age, but we felt it was functioning well (no pun intended) so it wasn't included.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I got my license about a year ago so I will be listing it, but I'm sure I will interact with some good people.