Fix and flip #9...The Blaine Beast!
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $147,000
Cash invested: $65,000
Fix and flip #9
What made you interested in investing in this type of deal?
I was just getting back into fix and flips after a short break and rehabbing our own personal house. I had a set amount of cash to work with, so even though this was out of my typical investing area, the price seemed do-able.
How did you find this deal and how did you negotiate it?
Through the MLS negotiated directly with listing agent and auction site.
How did you finance this deal?
Cash drawn from a HELOC on our primary residence.
How did you add value to the deal?
Complete rehab
What was the outcome?
Decent. We did turn about a $25K profit, but it took a while to sell which was nerve wracking.
Lessons learned? Challenges?
I learned that a one car garage outside of the city limits is a big deal for suburban buyers. They want a 2 car minimum. Also, this house sat for 17 months so once the snow melted I realized how bad of condition the yard was in. It hadn't been cleared of leaves for years. I also hired some new help, which screwed me out of $4,000. They did really shoddy work which had to be redone. Lesson learned is to stick with the people you trust, even if they are more expensive.
- Gus Muller