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.
@Nicole S.- Thank you so much for your honesty! I always like to tell people that your first few deals are your way of building confidence within yourself and building your education. The properties we lose on are typically our greatest learning experiences.