Single-family residence wholesale investment in Kingsport.
Purchase price: $18,500
Cash invested: $2,000
Sale price: $28,500
This project was a simple project we bought and held for over a year and then sold it for an $8,000 profit. We were gonna fix and flip it but didn't end up doing that because we had other deals we were working on that had more potential.
What made you interested in investing in this type of deal?
We had enough cash to purchase it outright and it was a small enough investment we could do it without risking too much money. We knew we had the option to fix and flip or resell it for a profit because of the below market purchase price.
How did you find this deal and how did you negotiate it?
We found this deal on social media from a lady that wanted to get rid of it because her husband had passed away and couldn't complete the work on it. We offered her less than asking price and she was excited to sell it.
How did you finance this deal?
We paid cash for the deal and then paid cash for the property taxes for the year we held it.
How did you add value to the deal?
We held the deal for over a year to make it a long term investment which lowered the taxes we would owe on the profit.
What was the outcome?
We sold the property to a investor for a profit and now the investor is going to hire my remodel company to complete the work on the property and then sell it. We will make money on the remodel of the house and no longer have the risk of holding the property or the risk on the outcome of the final sale price after remodel.
Lessons learned? Challenges?
One lesson we learned was when starting out keep your properties close to home. This one was 45 minutes away and made it drop down the priority list to properties that were closer to us. We couldn't just run over and work on it for an hour an hour or 2 without having at least a half day to lose with drive time and setup. A challenge that could have happened was this property lied exactly on the border of a bad neighborhood and a good neighborhood so we got mixed reviews on potential sale price.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
My wife is a real estate agent and handled the deal for us. I would definitely recommend her to others! Her name is Jenn Huss with Hurd Realty.
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