Buy & Hold to Fix & Flip
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $82,500
We purchased our first investment property, which we hoped we could implement the BRRR method. Six months later, and we'll be putting this on the market next month, and SO ready to move on to the next one.
What made you interested in investing in this type of deal?
Seeing and reading about investments and the successes that others have had.
How did you find this deal and how did you negotiate it?
I found it through my own research. We were about to get almost $20K off of the original asking price after we had an inspector come out, and discovered so incorrect info in the original listing relative to the size and offerings of the property.
How did you finance this deal?
We have investors.
How did you add value to the deal?
We added an additional bedroom, and changed a half bath to a full. Through the process we also added new electric, plumbing, HVAC, and we are having termite treatment done.
What was the outcome?
While we will make our investment and then some back when we sell, we are bummed that we weren't able to keep this as our first buy & hold.
Lessons learned? Challenges?
UGH! So many. A lot of our issues stemmed from our contractors, so I would do a much better job next time staying on top of them every step of the way. I'd be much more organized and specific when getting bids next time around i.e. making sure that each line item and cost is clear, timing, draws, and making sure I get recommendations on current, past, and upcoming project they're working on.