Updated over 3 years ago on . Most recent reply
Novice Nostalgia (Buy, Fix, Hold, Flip)
Investment Info:
Condo fix & flip investment in Atl.
Purchase price: $85,000
Cash invested: $15,000
Sale price: $152,493
Purchasing a property post recession, and venturing into the DIY department. The sale, sweat equity, risk, and reward.
What made you interested in investing in this type of deal?
LOCATION. The condominium was within a block of another property I owned. Literally footsteps away from Peachtree Street in South Buckhead. INCOME. It was the last unit without rental restrictions. PRICE. Buy low, sell high….
How did you find this deal and how did you negotiate it?
The condominium was in foreclosure and had been on the market for awhile. A large earnest amount, and the ability to close quickly was leveraged to negotiate the deal.
How did you finance this deal?
Income and Retirement Savings
How did you add value to the deal?
Unable to find a licensed contractor within the project budget, the inspection report was utilized as a map instead. I was very hands on, purchasing the materials and only paying for labor. The bathroom was completely redone, fixtures updated, in addition to adding a full size washer and dryer. It was an older building, with minimal amenities. Maximum effort was put toward enhancing the aesthetic to a standard comparable to what was
What was the outcome?
The property was rented out for a few years, while an offer to buy the entire complex was on the table/in limbo. After us landlords were outvoted by owners who were actual residents, I decided to sell.
Lessons learned? Challenges?
Lessons? High HOA fees aren't worth cutting into your profit, unless justifiable…. ie. the ability to increase rent. I'd never buy another 2 bedroom unit, with one parking spot, and limited parking again. Challenges? The unpleasant consequence of capital gain tax, due to not taking advantage of 1031 exchange.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Iconic Realty Investment Corporation