Condo fix & flip investment.
Purchase price: $35,000
Cash invested: $5,000
Sale price: $67,000
My first flip project! A wholesaler who is now a great friend brought the deal to me. We decided that he would bring the deal and I would work the rehab and split the profit and costs 50/50. I ended up doing the work myself and learned a lot of handyman skill in the process, but this flip took 2 months to complete when it could have taken 2/3 weeks with professional contractors, and I didn't end up saving much money because I had to buy my own tools! Next time we'll stick with contractors.
What made you interested in investing in this type of deal?
I wanted to break into the flipping business and the numbers on this deal allowed for a lot of room for error in case things went south.
How did you find this deal and how did you negotiate it?
This deal was brought to me by a wholesaler.
How did you finance this deal?
We both put in 5k and financed the remaining 25k through a hard money lender.
How did you add value to the deal?
Small things can make a huge difference. I gave the whole space a new paint job, added black fixtures, and installed new carpet.
What was the outcome?
We ran our numbers assuming a 65k sale price as the best case scenario. We ended up accepting a 75k conventional offer that appraised at 67. Still beat our expectations!
Lessons learned? Challenges?
Time is valuable. I spent 2 months fixing this place up due to lack of experience and not having an exact plan on how what to do first. I think next time if I do a project myself, I'll finish 1 thing at a time instead of working on multiple tasks at once. It may have cost slightly more to hire a contractor, but the peace of mind and extra time saved would have been 100% worth it.
@David Mo Congrats on your first flip!!
@David Mo Great project to start out with. Thanks for sharing. Of course now if you go with a contractor what are you going to do with all those great new tools? :). We started out doing all the work ourselves. Unfortunately we didn't learn as fast as you. Now we have GC company. So we hire ourselves. Best of luck with your new ventures.
That is awesome David!
@Jim Kalish Thanks for reading! My tools will sit in my shed forever until I need to impress someone with my newfound handyman skill :) Best of luck to you!
Thanks @Hunter McBryde !
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you