Updated almost 6 years ago on . Most recent reply
Heavy fixer SFR flip success
Investment Info:
Single-family residence fix & flip investment in Woodburn.
Purchase price: $185,130
Cash invested: $65,000
Sale price: $315,000
Heavy fixer with a foundation repair in Woodburn Oregon was completely renovated into a move-in ready home.
What made you interested in investing in this type of deal?
The price was good with built-in equity.
How did you find this deal and how did you negotiate it?
A friend's family member had inherited the property. The family member who passed away was a hoarder and it took 2 years for them to clean out the property. Once the property was clean, they didn't want to deal with the repairs needed to list the home. After discovering the crack in the foundation we used the foundation bid to lower the purchase price.
How did you finance this deal?
Hard money lender for the 1st position @ 12% interest and 3 points, JV partnership for 2nd position.
How did you add value to the deal?
Retouched every surface. Added sheetrock in the basement to partially finish the space. Replaced some wiring and plumbing. Installed new appliances.
What was the outcome?
Sold the property two months later than projected. Net profit: $42,000
Lessons learned? Challenges?
The foundation crack repair took up a lot of time and finances in the beginning. Larger homes take longer than anticipated. The general contractor was injured 2 weeks into the start of the project, always have a back-up contractor on call.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
RareBird listed the property and it went pending in 10 days.
