Updated almost 4 years ago on .
First project, full gut!
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $65,000
Cash invested: $215,000
Sale price: $385,000
Contributors:
David Ramirez,
Bernardo Tancredi
Completely gutted the property, practically a new construction. Great learning experience, great return
What made you interested in investing in this type of deal?
We were looking to invest in fixer uppers to build cash reserves
How did you find this deal and how did you negotiate it?
Through a wholesaler. We did a 70% rule with an initial ARV and offered our MAO
How did you finance this deal?
Through our own capital and a private lender
How did you add value to the deal?
Completely remodeled it, new roof, plumbing, electrical, ac ducts and units, windows. We made a 300 sqft addition with two bedrooms and a bathroom and a lot more.
What was the outcome?
The outcome was very successful, we were able to go through it from start to finish it and sold it for a substantial higher amount than we initially thought.
Lessons learned? Challenges?
It was a very rough first project, I would suggest not starting with something as complex. However I would do it all over again because the knowledge that we posses today is extremely valuable.