This was my first fix and flip and it was unintentional.
Investment Info:
Single-family residence other investment in Farmington.
Purchase price: $90,000
Cash invested: $13,000
Sale price: $122,000
This was originally going to be a buy and hold property. I listed it with the wrong property management company and 5 months after the basic fixes still didn't have a tenant in the property. In January we decided to put a little bit more cash into it and sell it. Overall we cleared $15k on the property for a 115% cash on cash return.
What made you interested in investing in this type of deal?
I wanted a buy and hold property but due to a bad decision on Property management and extended vacancy decided to fix and flip.
How did you find this deal and how did you negotiate it?
I am a Realtor and just made the guy and offer when I got to his house.
How did you finance this deal?
I bought the house on a Real Estate Contract and paid cash for the rest of the deal.
How did you add value to the deal?
New Flooring, Paint and a cleaned up the back yard.
What was the outcome?
We earned a 115% cash on cash return.
Lessons learned? Challenges?
I will manage my rental properties myself moving forward. The issue with the property management company is that they charged almost 22% in fees by the time it was all said and done and were impossible to get a hold of. They didn't market my property well and made 0 effort to get it rented. The long term vacancy was hard to handle and pulled more capital than I intended.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I was the Real Estate Agent in this deal and I am not going to mention who the property manager was in a public setting :)