Flip with a hidden opportunity for more profit
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $95,000
Cash invested: $62,000
Single family home. Purchased it in cash from the home owner right before foreclosure. Subdivided the lot to create a new parcel and sold the parcel for new construction.
What made you interested in investing in this type of deal?
Great opportunity and a great area. Cute older home purchased well below market value.
How did you find this deal and how did you negotiate it?
A friend knew the home owner and wanted to help him avoid foreclosure.
How did you finance this deal?
The purchase and renovations were done in cash with a partner.
How did you add value to the deal?
We found the deal but needed a partner who had contacts for contractors and knew the market well as we were new to the area. We have managed the finances and completed some of the work ourselves.
What was the outcome?
The house was on a 1.75 acre lot, which was subdivided. The new parcel was sold for new construction. The house is currently on the market.
Lessons learned? Challenges?
We learned a lot about working with contractors, estimating repair costs, unexpected expenses, sometimes paying a professional to complete the work is worth your time and money, cheap labor is not always cheap