Fix And Flip

[Rebecca Wagner]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $66,000
Cash invested: $45,000
Sale price: $180,000

The very first flip we ever did. Lots of lessons learned with this one. This property essentially needed a full renovation. We refinished the hardwood floors, continued finishing in the garage conversion to make it additional living space, replaced the roof, all new electrical, all new plumbing, brand new HVAC, all new paint interior and exterior.

How did you find this deal and how did you negotiate it?

We acquired this property through our own wholesaling operation. With what the seller owed on the property, we could only make a deal if the offer price reflected it paying off the mortgage. She was okay with this as she didn't want the payment every month for a property she was no longer living in.

How did you finance this deal?

We had a private lender on this one who didn't require points up front, but he did have interest added on the back end.

What was the outcome?

Once we let go of the project manager, and found a crew to continue the rehab, and they were able to complete it within 2 weeks of hiring them. They finished the house, and everything was perfect for us to put it on the market. Once we put it on the market, we had a full price offer within 14 days.

Lessons learned? Challenges?

We hired the wrong project manager, and didn't realize this until closer to the end. She was taking the subs off our flip and putting them on other jobs, extending our timeline. The subs that she hired destroyed the new cabinets we purchased, broke the brand new stove and we had to get another, the painter never came back to finish the exterior, we didn't plan on replacing the AC until it died 2 days before we listed it, the plumbing had to be replaced because it wasn't done correctly at first.