Updated 3 days ago on .
Fix and Flip in Phoenix Metro: Lessons Learned, Renovation Costs, and ROI Breakdown
Investment Info:
Townhouse fix & flip investment.
Purchase price: $75,000
Cash invested: $65,000
This is a fix and flip project I am doing. Got this property for a great deal. Going through the rehab now. Currently, we are wrapping up phase one. We have demo done, the wall shelving and roof down in the AZ room. The home tested positive for asbestos, so I have a crew coming in to remove the popcorn ceiling where it tested positive at. Timing wise, the project is still on track. I am currently 3K over budget right now. There was a leak behind the master sink that ran into the concrete and I had that fixed. AC unit has been replaced and the inside of the home feels great now. LOL. Windows are planned to be replaced in the last phase. Stay tuned.
What made you interested in investing in this type of deal?
This was a good deal number wise and condition of the home. I bought the property for 75K. This is s 3 bedroom, 2 bath townhouse at 1628 sqft with a two car garage.....i know right. The appraisal came back valued at 265K. so at 75K with a rehab estimated at 65K I'm in 140. Even if i do go over budget, or it may take longer to sell, the spread for this property is worth it.
How did you find this deal and how did you negotiate it?
I got this deal from a wholesaler in my investment group with Pace Morby. Subto and Gator
How did you finance this deal?
I did hard money and my capital. I have private money lenders who funds were tied up to where they were not able to invest in this deal with me. I didn't mind for this one to show that I can use my capital to invest, as I will showcase this for capital raising.
What was the outcome?
The home is still in progress, so stay tuned.
Lessons learned? Challenges?
Lessons learned so far: Closing and lenders. Having a good lender is everything, just like it is for a good construction crew. This was a stressful closing for me, but I was determined not to let this slip by. The closing date was originally 7/18 and it couldn't be moved. When the deal was presented to me; I had a week to do my due diligence and secure lending. There was a lot of back and forth for this closing and a delayed one but it got done.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am a real estate agent and I have my lenders. I would recommend Capital Fund 1. I didn't use them for this one because they would only fund up to 75% and this lender I went with funded 90%...as a headache it was dealing with them; their numbers worked better. Make sure you know the areas your preferred lender services before you lock up a property. My go to lender was Copa Capital but they didn't service Casa Grande. So a lot of bouncing around to try and close in a week...that didn't happen.
