Fix and Flip Cat House

[Anthony Cross]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $135,000
Cash invested: $60,000
Sale price: $260,000

We call this 4 bed 2 bath house the cat house because of all the animals that where living in it. After gutting most of the place with flood cuts in the basement we were able to make this a dream home for the purchaser.

What made you interested in investing in this type of deal?

I have worked on these types of houses before and new a lot about them. It was easy to figure out the rehab costs and run the numbers to make a profit.

How did you find this deal and how did you negotiate it?

I found that the garage doors and a lot of other items were not properly taken care of. I knocked on the door and found that the owner was struggling fanatically. They wanted to make a new life for themself, so I ran the numbers and was able to negotiate a deal.
This was an interesting one. The person ended up braking down at the title company during closing. I assisted her in towing the car and I paid for the repairs. She was grateful I didn't just buy the house and leave.

How did you finance this deal?

Cash and some HELOC for the purchase and rehab.

How did you add value to the deal?

I put lots of work into the rehab.

What was the outcome?

We sold the house in 4 hours for full asking price.

Lessons learned? Challenges?

Again, this was challenging because of the supply chain issues. Also, the with that many animals we had to make sure the subfloor was very well cleaned and sealed.