Single-family residence fix & flip investment in Houston.
Purchase price: $72,000
Cash invested: $21,000
Sale price: $152,000
My First Fix & Flip at 22 years old. I learned so much through this project and I am grateful for all the mistakes I made.
What made you interested in investing in this type of deal?
This house had a detached two-car garage turned into a small studio with kitchen, restroom, and bedroom. Unfortunately the garage caught on fire and caught 1/4 of the house which turned out to be master bedroom and kitchen. Seller was motivated to sell. It had good margins where even if the deal went bad I can still come out on top.
How did you find this deal and how did you negotiate it?
A wholesaler brought it to my attention.
How did you finance this deal?
Hard money loan.
How did you add value to the deal?
Lessons learned? Challenges?
New FEMA regulations
Congratulations on the Flip. What is the cost of the rehab and the duration for this project?
Did you self-manage the Sub-contractors or you hired a General Contractor?
Congrats @Jorge Garcia !
I actually self managed the contractors. Which is not a good idea if you want to scale. It was 60k rehab. Retail Arv was higher, but I sold to a buy and hold investor at 152k. The reason being was because the rehab was more than a certain percentage of the appraised value of the property, so following the new 100year flood plain/ FEMA rules. The house was required to be elevated. So to cut my losses I sold it. This was around a 3 month period.
Congrats @Jorge Garcia
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