Huntsville area flip
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $41,000
Cash invested: $82,000
Sale price: $171,000
This fix and flip was picked up using the subject-to strategy. Seller owed just over 40k and we took over her note. From there we used private money to fund the rehab. Target rehab was 60k but we kept finding more and more things that needed to be fixed in order to have a strong final product. The delays that we hit actually helped our projected ARV as we sold for more than expected. Despite going over budget, we managed to exceed our projections.
What made you interested in investing in this type of deal?
We are always looking for solid single family investments.
How did you find this deal and how did you negotiate it?
Deal was found through a TV ad. Seller called us and said she needed to get out of the property to avoid foreclosure.
How did you finance this deal?
We financed the acquisition of this deal subject to the existing financing. We raised private money for the rehab funds.
How did you add value to the deal?
This one had almost everything replaced. New siding, roof, hvac, sub floor and flooring, water heater, etc.
What was the outcome?
We achieved a ~41k profit after all rehab fees and interest
Lessons learned? Challenges?
With every deal you do, there is a chance that you will uncover more issues than you underwrote for. We were thankful that the more extensive rehab gave the market more time to appreciate so our exit was much higher than projected.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
1000% recommend Rachael McCuen with Chanda Davis real estate for the listing, she sold this one for a great price.
Most Popular Reply
Good stuff @Caleb Bryant
thats a great exit!....Was this in 35810?