Fix and Flip Fort Worth 4-plex

[Kyle Mccaw]

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $195,000
Cash invested: $10,000
Sale price: $440,000

This was a distressed 4-plex in a very nice part of town. It had sat empty for some time.
$130,000 Rehab included:
Replace all water service lines
Sub metered electric
Replaced all windows
Repaired roof
Repaired rotten wood and sheetrock
Full paint inside and outside
New HVAC systems
Full rehab of each unit, new cabinets, granite tops, appliances, tubs and tiled surrounds, flooring, texture etc

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

I saw the opportunity based on location and deep discount in price.

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

Another investor wrote on a Facebook post that he had it under contract and couldn't get financing to close. I asked him for the address and jumped in the truck to walk it. Had to go thru and unlocked window. It was VERY rough but I love the ugly ones.

How did you finance this deal?

Hard money loan

How did you add value to the deal?

Completed updated it. Sub metered the electric.

What was the outcome?

Sold it for a nice profit.

Lessons learned? Challenges?

My contractors can fix just about anything. The city and utility providers were the only real hurdle.

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

Ryan Rite with Real Texas was the listing agent. He is a master marketer
McCaw Property Management leased up the property before selling.

[Evan Shiels]

How much of that 130k for the rehab ended up being eaten up by holding costs? It sounds like a nice turn around, but my brain always craves the often untold story of money spent out of profit. I find in my own deals that the hidden costs, especially those associated with time always come back to kick me in the face. As I am a sucker for making the same mistakes multiple times, my face has grown a bit haggard over the years.