Updated 11 months ago on . Most recent reply
Rural Arkansas Flip
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $35,000
Cash invested: $118,427
Sale price: $178,000
First flip! Was a great learning experience, especially when it came to design and quality of final materials based on surrounding market. All cash deal, which also taught me the value of exploring partnerships and OPM! Ended up overdoing it, which threw off my initial thoughts of buy and hold rental.
What made you interested in investing in this type of deal?
It was (and still is) a growing market and I was interested in taking on a heavy rehab, so when this opportunity popped up the timing made sense.
How did you find this deal and how did you negotiate it?
This came up on a gov foreclosure and due to the heavy amount of work most people passed on it, allowing me to save quite a bit on purchase price, albeit low to begin with.
How did you finance this deal?
Cash.
How did you add value to the deal?
Full gut. Opened up floor plan, expanded master bedroom, HVAC replaced window units, fenced in yard separating two lots, complete replacement of electrical, added gravel drive and all new materials inside in terms of flooring, appliances, fixtures, etc.
What was the outcome?
Spent too much money and shaved a ton off of final profit margin, but end result was great and learned more than I could imagine.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Tracy Spencer with Metro Realty in Little Rock, AR is a top-notch broker who has his thumb on the pulse and can be a huge asset for investors and homeowners alike.
Most Popular Reply
Congrats on your first flip! I am big fan of buying in the Little Rock metro area as well.