Investment Info:

Single-family residence fix & flip investment.

Purchase price: $215,000
Cash invested: $6,000
Sale price: $260,000

Wrapped a fix-and-flip with a partner in five months, but a tough lesson learned as a newbie. We went over budget due to foundation issues. Even though we planned for foundation repairs, the work triggered additional problems we didn’t anticipate—like severed pipes that had to be fixed. End result: $6K loss.

Key takeaways:
Always get a thorough inspection—no exceptions.
Build in a solid contingency budget.
Include a percentage buffer in your underwriting—protect your margins.

What made you interested in investing in this type of deal?

The potential profit when I didn't have to put up any upfront money.

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

Wholesaler with no negotiations taking place.

How did you finance this deal?

Partner funded the deal through a private money lender.

How did you add value to the deal?

I found the deal and brought it to partner; I did odd end things to facilitate completion of the fix and flip.

What was the outcome?

The rehab turned out well with modern appliances and significant conversion. However, loss $6K in deal.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Always get a thorough inspection—no exceptions; Build in a solid contingency budget; Include a percentage buffer in your underwriting.