Worst fix and flip we've done so far (Historic Oklahoma City)

[Alyssa Dyer]

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Oklahoma City.

Purchase price: $71,000
Cash invested: $45,700
Sale price: $140,000

Contributors:
Curtis Kupfersmith

Fix and flip duplex in historic OKC. Everything that could have gone wrong... did.

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

The numbers were killer on the front end. A combination of bad weather and misinformation from a contractor killed the budget.

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

We found this deal from targeted direct mail. Wee hit it off with the seller and negotiating was pretty easy.

How did you finance this deal?

Commercial. Interest only for 6 months.

How did you add value to the deal?

D. All of the Above (haha)
HVAC, roof, trim, paint, floors, foundation, electric, plumbing, fixtures, bathroom, kitchen, landscaping, flooring.

What was the outcome?

We ended up losing about $5,000 on this one. It was painful but we learned a lot. The house ended up great, and the lady living in it now is super happy. Our pockets just hurt a bit.

Lessons learned? Challenges?

We had Section 8 tenants in place when we bought. We served 30 days notice. They ended up staying 90 and were tough to evict. Messed up timeline.
The roof was fine, but a hail storm totaled it midway through the project. When we replaced the roof/decking we ended up needing to replace about $2k worth of trim that was hidden under the first roof.
We knew we needed foundation work, we weren't told all the flooring would need to be ripped out to make the repairs. This caused a need for new trim.

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

Lender: First Liberty, Heather Howerton
Title: Chicago Title, Haley Gann
Broker: Table Investments (our company!)