1st Fix, Hold, and Flip complete.
Single-family residence fix & flip investment in Atlanta.
Purchase price: $85,000
Cash invested: $15,000
Sale price: $152,000
2 bedroom, 1 bathroom, 920 sq ft. ground level, condominium.
What made you interested in investing in this type of deal?
The LOCATION is literally footsteps away from Peachtree street; in the heart of Midtown, Atlanta. It had no rental restrictions. I’m extremely familiar with the area, and the post recession price was unbeatable.
How did you find this deal and how did you negotiate it?
It was a foreclosure; A friend from undergrad purchased and renovated a property in the same building, post recession. It had been on the market for quite sometime. After my low ball offer was denied, I was counter-offered a phenomenal price that I couldn’t refuse. Despite, the unreasonable escrow request...
How did you finance this deal?
Personal savings for purchase and renovations.
How did you add value to the deal?
Major updates..... I completely renovated the bathroom, updated the fixtures, added a washer and dryer, etc.
What was the outcome?
49,000.00 profit, minus capital gain tax. (I didn’t utilize a 1031 exchange)
Lessons learned? Challenges?
Had I known how home renovation loans worked, that would have been utilized instead of my savings. I wish I was more knowledgeable regarding the going percentage rate for hiring property management, because it was way too high for the service I received. I definitely learned that being a hands off landlord works best for me. Lack of mentorship and coaching was my biggest obstacle in this process.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I didn’t have any contacts for reliable contractors, so I used my inspection report as a guide, and delegated each task from there. I was extremely hands on and somewhat knowledgeable from previous work I’ve done in my own home. I purchased most of the supplies independently, to avoid paying for more than labor.