Single-family residence fix & flip investment.
Purchase price: $48,000
Cash invested: $50,000
Sale price: $108,500
My 1st fix and flip. I was the project manager, Part investor, part contractor, part floor plan/ interior designer and did all of the staging! I decided to leave the corporate world and discover my hidden talent. I cannot say that I was prepared for the challenges but the challenges definitely prepared me for my future in real estate. I am ready for my next project which is all I think about! Funding the next one is the only thing that's slowing me down.
What made you interested in investing in this type of deal?
Rough/outdated house in a nice neighborhood. The numbers were great and could have been even better but I was not prepared for some unexpected things.
How did you find this deal and how did you negotiate it?
I found the deal through the MLS. After my agent and I went to look at it, I sent an offer for 47,000. The listing price was about $50000 if not more. My offer was accepted at $47000
How did you finance this deal?
I received funds from family members and I also used a lot of my personal credit cards as well.
How did you add value to the deal?
Based on the feedback from showings, opening up the floor plan was a huge seller and the staging added a homie feel.
What was the outcome?
We listed it Nov 1st, 2019. I had a lot of showings but the biggest turnoff was, no basement. I received a contract maybe the end of February 2020 and closed in the March, right before the shutdown.
Lessons learned? Challenges?
Knowledge is definitely power! My biggest challenge was the contractors. Instead of doing my research and possibly getting references, I just rushed to sign the contract because everything seemed perfect. It costs me a lot of money and time in the end and was not to my satisfaction. I also learned that when doing my numbers, I should always subtract about 5 or 10 thousand from profit just in case something unexpectedly happens. Then I'll know a rough amount and see if it's still worth it.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Renee Henley Coldwell Banker
Congrats! sounds like you learned a lot from this deal, and are ready to make bigger profit on the next!
@Janet Hamilton Congratulations. Best of luck in all your endeavors.
@Chris Tarpey, Thank you! The knowledge that I've gained from my 1st flip was incredible. I'm definitely positioning myself for bigger and better deals/profits.
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