Fort Worth, TX - Fix & Flip

12 Replies

Investment Info:

Single-family residence fix & flip investment in Fort Worth.

Purchase price: $110,500
Cash invested: $5,000
Sale price: $225,000

Purchased and rehabbed with private money funding. This property had a great location but desperately need to be updated to modern expectations. The first 6 pics are before. The others are the final. This was a complete gut job. I did just about everything but a new roof. Went into contract the first day I placed on the market for $10k over the list price.

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

Location, potential profit

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

Referral from someone that knew I was an active buyer of houses that need love.

How did you finance this deal?

private money

How did you add value to the deal?

This property had a great location but desperately need to be updated to modern expectations. This was a complete gut job. I removed a wall that separated the kitchen and living areas, converted from a 1.5 bath to a 2 full bath, new water heater, new HVAC, foundation repaired, paint, doors, fixtures, appliances, granite, cabinets, landscaped original wood floors/stained dark walnut, painted inside and out, new sod/landscaping....basically everything but a new roof.

What was the outcome?

Went into contract the first day I placed on the market for $10k over the list price.

Lessons learned? Challenges?

I invested more in marketing the property for the sale side. Money was well spent.

@Kyle Mccaw That looks great!! I'm impressed you turned that around so quickly and for more than asking!  One question though, it says you put $5,000 cash in, but I'm assuming that wasn't including the rehab cost? I'd like to know, generally speaking, what a rehab like this cost in the metroplex.  I'm a contractor in East Tx so I have a feel for the costs here, but no experience with what things run there.  Any info would be a great help!

Originally posted by @Michael Liebrum :

@Kyle Mccaw That looks great!! I'm impressed you turned that around so quickly and for more than asking!  One question though, it says you put $5,000 cash in, but I'm assuming that wasn't including the rehab cost? I'd like to know, generally speaking, what a rehab like this cost in the metroplex.  I'm a contractor in East Tx so I have a feel for the costs here, but no experience with what things run there.  Any info would be a great help!

Also, was the cost of money free since it was private financing? Usually there is a cost associated with using someone else's money but if you found a way around you are set for life.

Account Closed I typically pay 2pts to originate and 10% interest rate with 3 months minimum. This is all payable when I close the sell side of the flip...or refi from my holds. It is lower if I choose to pay month but I hate making monthly payments.

Dude you are right. If I found free money I would be set.

@Kyle Mccaw Thanks for the information! I’m impressed you can don’t that extensive of a rehab on that budget. I alto like the way you structured the financing. It’s almost like a line of credit that balloons at 3 months. Smart way to run your business!

@Michael Liebrum - my financing balloons at 12 months. 

@Jenna Myhre Estimating rehab expenses is the hardest and scariest part of buying a distressed property. You learn from experience. Until you feel comfortable have a trusted vendor price it for you. I have a list of contractors I use constantly for my flips and property management company. My costs are lower due to volume.

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