Fix & flip in Hawaii

[John Rankin]

Investment Info:

Single-family residence fix & flip investment in Honolulu.

Purchase price: $640,000
Cash invested: $200,000
Sale price: $1,020,000

This was a fix and flip property I partnered on. Purchase was made using $200,000 in private money and rest in hard money to also cover rehab which was about $145,000. After closing and holding costs, remaining profit was $70,000. Property went to market right in the middle of Covid-19 pandemic which impacted the sales price. ROI was not as high as originally projected but still not a bad deal.

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

Seeing the success of other investors

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

Partner found the deal and I came on as a private lender.

How did you finance this deal?

Hard money and private money

How did you add value to the deal?

Complete rehab project.

What was the outcome?

$70k profit is not bad considering no one could have predicted the current pandemic. But for the price point and amount of risk involved, as well as the extra income tax paid on profits I prefer longer term investments.

[Rob King]

@John Rankin well done, especially pushing through the current uncertainty.