Fix n Flip or Buy and Hold
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $515,000
Cash invested: $100,000
Sale price: $780,000
This project is in process right now. It is a 1250 sq/ft main house and a 627 sq/ft guest house. The lender ARV is $740-780k. There is irrigation, a huge car port that the next person could turn into a garage.
What made you interested in investing in this type of deal?
I've been looking for properties that hve ADU potential or an existing ADU. You could say I got lucky and I've been selectively making offers in certain neighborhoods. I noticed this neighborhood is trending so I'd say luck favors the efforting.
How did you find this deal and how did you negotiate it?
I found this deal walking down the road one morning.
How did you finance this deal?
I finnaced the deal with Capital Fund 1 and then with my companies cash.
How did you add value to the deal?
This is a full gut. Everything that needs to be new is new.
What was the outcome?
TBD......
Lessons learned? Challenges?
Evern though I know there will be change orders, change orders seem like a surprise. I ws defintely surprised by how expensive the basics like white subway tile are. The main challenge is knowing when to say yes and when to say no.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I worked with the agent on the sign. I'd recommend Lend Money Make Money for gap funding. Why? It's my company!