Single-family residence fix & flip investment in Rollinsford.
Purchase price: $220,000
Cash invested: $265,000
Sale price: $330,000
My very first fix and flip! Wholesaler (friend of mine) presented me with a property he purchased for $195,000 at Auction. Sold to me for a $25,000 market up for $220,000. Invested roughly $45,000 to renovate over a 2 month period. Property was purchased on 11/17/20 and listed for sale on 1/17/21. Had one offer (over asking) back out and had a back offer accepted at asking price. Closing date is 4/3/21!
What made you interested in investing in this type of deal?
At the age of 40 I decided to shifted my focus away from Financial Services (life insurance, investments, retirement planning) and focus solely on real estate investing. Having full autonomy has always been a dream of mine.
How did you find this deal and how did you negotiate it?
Wholesaler presented an opportunity and I purchased it. No negotiating. If I didn't take it he had others that would.
How did you finance this deal?
HELOC and personal cash.
How did you add value to the deal?
Renovated everything: floors sanded and refinished, completely new kitchen and floor, paint inside and out, simple landscaping, and perimeter drain in the basement.
What was the outcome?
All in at $265,000... Sold for $330,000.
Lessons learned? Challenges?
1. Take quick deliberate action every step of the process, from purchase to rehab to sale, and not being burdened or paralyzed by over-analysis.
2. Being cheap on the rehab MAY net you a slightly higher profit, but is it worth it to then sacrifice peace of mind? Spend it, get it done right, and move on. Cutting corners with cheap labor is most definitely not the answer when building a business. Lots of quotes will save you money, save you stress, and save your sanity.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Hey @David Duquette , congrats on completing your first flip!
Thanks @Sean Pan !
@David Duquette this is awesome!
Thanks @Dmitriy Fomichenko !
@David Duquette . How much will closing costs be? Or is the 330,000 net of commissions and closing costs?
@Joel Florian , closing costs calculate out to about $14,000 which is not included in my numbers above. So, Net for me will be about $51,000.
Congratulations, that is about a 19% cash on cash return in just over 4 months. Or almost 60% annualized.
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