Single-family residence fix & flip investment.
Purchase price: $65,000
Cash invested: $110,000
3 bed, 2 bath brick house with large laundry room, 1 acre. Easy access to US Hwy 15-501, US 1, Raleigh, Pinehurst, Fayetteville, NC.
What made you interested in investing in this type of deal?
Want to build long term financial freedom, and utilize our family's skills.
How did you find this deal and how did you negotiate it?
Was a for sale by owner.
How did you finance this deal?
Cash out re-financing of primary residence.
How did you add value to the deal?
Extensive updating, remodeling, new windows, new doors, new paint, new flooring, new HVAC, new septic system, new roof. Husband is licensed general contractor, plumber, electrician.
What was the outcome?
Nearing completion of the renovation...
Lessons learned? Challenges?
We need to hire people to do some of the work, instead of doing 90% of it ourselves.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, I am a licensed realtor with Keller Williams Realty, Pinehurst.
@Sherry McQuage nice project. I see you purchased it for $65k but confused by the “cash invested” figure of $110k. What was the result of this deal? I currently invest in Fayetteville, but wouldn’t mind branching out towards Carthage area.
This flip is currently under contract and will close in November....so I am limited on being able to talk about some of the numbers.
It was a FSBO I found by driving for dollars. We bought it for $65000 and put additional $65000 into it (materials, a little sub-contracting out). Since my husband did the lion's share of the work (he is a licensed general contractor, plumber, electrician), the actual cost to renovate is low because we didn't "pay" him to do the work. We will net a nice amount, and taxes will cut into that. Since this is our first flip, we are learning how to do things better for the future. Next time, I plan to utilize the 1031 exchange; got to learn what that is first.
Since I am an experienced realtor in Moore County, NC, [Aberdeen, Pinebluff, Jackson Springs, Seven Lakes, West End, Carthage, Cameron, Pinehurst, Whispering Pines, Vass, Lakeview, Tramway/Sanford (Lee County)] we are planning to do more flips...and ease into BRRRRing.
Would love to chat with you and see how we can help each other's business.
Hi @Sherry McQuage ,
Generally speaking, you can't 1031 exchange a flip. I have some resources I can send you to learn more if you're interested. Sorry to be the bearer of bad news.
No worries! I want to learn more about 1031 exchanges. If you would share some information about them with me I would be very happy to learn!
Better to hear "bad news" before you feel/experience bad news. Learning from others without having to make every mistake myself is...well, an advantage to being on Bigger Pockets.
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