Virginia Fix & Flip Complete!

[Cassidy Burns]

Investment Info:

Single-family residence fix & flip investment in Clifton Forge.

Purchase price: $61,500
Cash invested: $19,894
Sale price: $125,250

Fix & Flip Project. Great return. See the #s Below:

-Purchase Price: $61,500
-Closing Costs: $1,890
-Rehab Costs: $13,154
-Holding Costs: $4,102

-Cosmetic Rehab, interior paint, new kitchen, new bathroom, tore up carpets to find hardwood floors underneath, exterior landscaping.

Total Profit: $27,426 + equity gained during holding period.
28.04% Margin
83.36% CoCash Return
Investors Return: 9.86% on a balloon payment

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

My goal is 5 flips a year in this area. They must meet the 20%+ margin in order for me to partake in this type of deal.

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

Contractor knew the family that the owner had passed away and knew they needed to sell quickly. We paid contractor a $500 finders fee as well as he got the bid on the job.

How did you finance this deal?

Bank Financing for the debt at 75% LTV and then the equity was funded by an private investor.

How did you add value to the deal?

Cosmetic rehab.

What was the outcome?

Beautiful single family home complete. Perfect price point, 28% margin.

Lessons learned? Challenges?

The town I invest in has very particular price points that will move quickly. $110,000-$149,900. Quality homes will move quickly and no need to overdo it on the rehab. Expect offers to have seller credit help.

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

My go to portfolio lender funded the debt, I have a great agent who sold the property for me .