Porters Neck Road, Wilmington NC
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $242,000
Cash invested: $80,000
Sale price: $305,000
The house was built in 1985 and needed updating. It was a 3 bed / 2 bath. I updated to a 3/3 and opened the kitchen/dining area. At the time I listed it for sale, hurricane Florence came through Wilmington. A tree fell on the back part of the house, so I sunk more money into the repair. Unfortunately, I had to take a hit on my profits because of this act of nature. In the end, it was fun fixing it up and a great experience!
What made you interested in investing in this type of deal?
It was my first investment property. Unfortunately, I got too emotionally attached and added high-end finishings (like marble in the bathrooms, spa-like walk-in shower in the master, new cabinets in the kitchen, etc, etc.
How did you find this deal and how did you negotiate it?
I used a local realtor that I had used for another property to buy it but I found the house myself. I had moved to the area and rented a house nearby.
How did you finance this deal?
FHA loan.
What was the outcome?
It was a loss in the end but a great learning experience.
Lessons learned? Challenges?
Only add finishings that will help increase value (but not too high-end for the neighborhood). This house should have been a fix and hold, not a fix and flip. I should have rented it out but I was not knowledgeable enough to find quality renters.