Single-family residence fix & flip investment in Midwest City.
Purchase price: $30,000
Cash invested: $32,922
Sale price: $123,900
Fix and flip in Midwest City. Easily the toughest job we've done so far. Turned outt profitable, but just barely.
What made you interested in investing in this type of deal?
We like Midwest City, a lot. The margins were really helpful, and the low resell price made this deal a "no brainer."
How did you find this deal and how did you negotiate it?
This was a direct mail lead. Negotiating it was pretty easy. Since the house was in such rough condition a lot of investors passed on it.
How did you finance this deal?
Commercial. 6 months interest only.
How did you add value to the deal?
Repaired roof and siding, new HVAC, new drywall and insulation, new electric panel and wiring, new hot water tank, totally new bathrooms and kitchen, converted a bonus room to a master, new appliances, new fixtures, drywalled gararge in, cleaned up the yard.
What was the outcome?
All in we only made about $9k because of some surprises (who knew rats could do so much damage!). There was also a neighbor who was mad at us for not offering her a lease to own, so she made it REALLY tough to sell.
Lessons learned? Challenges?
Man. Too tough to list them all. Biggest lesson we took is to just plan on gutting it from the beginning sometimes. We tried to save a couple things to buffer the budget a bit even though we had room to replace (HWT was only a couple years old, panel was updated incorrectly and we didn't initially plan to replace, etc). We lost too much in holding costs by having to add on change orders at the end. If we'd done it from the beginning work would have been cheaper and timeline shorter.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Lending: First Liberty (Heather Howerton)
What type of list did you use to find this? What marketing are you doing to find your next project?
Congratulations. This was a job well done!
Good luck on your future deals as well!
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