Investment Info:

Single-family residence fix & flip investment.

Purchase price: $212,000
Cash invested: $85,000
Sale price: $329,000

This was in a nice neighborhood next door to an higher end neighborhood. House needed a ton of work as the previous owners had destroyed it. Tore out some walls, finished out a basement, and replaced every inch of the home.

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

The value of the neighborhood and surrounding neighborhoods drew me to this deal. The fact that this was an all brick house with new windows and roof made it appealing.

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

This was through a wholesaler (Blackjack Realty).

How did you finance this deal?

I utilized both my own cash and hard money lending through a local lender (William Wood)

How did you add value to the deal?

This was a complete overhaul including giving it an open floor plan and finishing out a basement. Lots of value added!!!

What was the outcome?

Sold the house and made a little bit of money. Several curve balls and learning lessons on this one. Though I was still in the black, I left $10-$15k on the table.

Lessons learned? Challenges?

First, I didnt have entire plan nailed down prior to closing which cost me time. Secondly, I underestimated the value of the square footage in the finished basement. Third, cigarette smell wound up costing me thousands of dollars even after rehab as we struggled to remove the smell. This also cost me numerous buyers and time. Due to all of this, I ran out of time on payment being due for lending and had to accept a lower offer to move the house and close in time. Still made $5000.

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

Being a licensed agent, I handled everything myself. The retail buyers agent was a pretty sharp guy.