Single-family residence fix & flip investment in Cape Coral.
Purchase price: $127,000
Cash invested: $70,000
Sale price: $235,000
Partnered with @CliffTerry and his Stage 94Investments to find, buy, renovate and sell this run down former rental property. We stayed on budget and timeline. The best part it was 7 roofs away from my primary residence, so I'm was improving my own neighborhood. IT was first experience with hard money lending, negotiating as an investor, coordinating with multiple subcontractors. Very pleased with the result. ROI was 14% and cash on cash return was 32% and annualized it was 98%. Excited about the opportunities this deal will open for us.
What made you interested in investing in this type of deal?
I walked by this dump every day. I was tired of looking at it.
How did you find this deal and how did you negotiate it?
I wrote a letter to the owner; they never responded, but the house showed up on MLS two weeks later. We made an offer and wasoutbid by another investor. After their inspection they backed out. I grabbed the inspection report from the realtor and got it under contract at 25k less than our original offer.
How did you finance this deal?
Hard Money construction loan. Fidus Fi
How did you add value to the deal?
New roof, new flooring throughout, removed popcorn ceilings, 2 new bathrooms, new kitchen, replumbed, new lighting, all new doors and trim and a ton of paint.
What was the outcome?
Under contract in 1 day. This is a market that there are few renovated homes. This one stood out.
Lessons learned? Challenges?
Contractor problems, small typical stuff, unreliable, not completely honest and forth coming. Had to rip part of a new shower out because he falsely reported the status of the plumbing.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Fidus Fi and Jon Doss hardmoney lender, Peter Davis buying agent, Jennifer LaFlamme lisitng agent
Looks great! Did you hire a GC for the renovation?
@Stetson Miller No Stephen Cliff has a contractor on staff and a great crew of subs.
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