Single-family residence fix & flip investment.
Purchase price: $128,000
Cash invested: $30,000
A Minimal Traditional pier and beam in the North Cliff Conservation District of Dallas, which is being rehabbed down to the studs. We swapped out the original wooden piers for brand new concrete piers and steel shims. A new Hardiboard siding covers the exterior and a new roof should be going on this next week.
What made you interested in investing in this type of deal?
I have experience buying properties for a hedge fund, and I wanted to take what I learned and apply it to a deal.
How did you find this deal and how did you negotiate it?
Found on the MLS. Negotiated through a real estate agent.
How did you finance this deal?
I financed the deal through a Guidance Line of Credit at Prosperity Bank.
How did you add value to the deal?
$65k in rehabs.
What was the outcome?
Lessons learned? Challenges?
Always get your permits up front.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Chris at Prosperity Bank.
I like that you didn't neglect the foundation...so many owners try to rehab in spite of the crawlspace then have problems down the road.
Recommendation: Try to avoid steel shims on a pier and beam home, rot/insect resistant cedar shingles are preferred:
- allows for more precise leveling
- can be easily installed without over driving thicker shims and creating humps in flooring down the road.
@Luke MacLean thanks for sharing! What did you calculate the ARV to be and how long do you think it will take to sell?
@Craig Tripp thanks Craig!
@Mark Severino . We had an appraisal done by the bank that financed our flip. They came up with the number—$235k. We’re currently under contract for $225k after just under 40 days on market. We closed on the purchase May 10 and listed it for sale on Sept 26.
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