South Austin Fix & Flip

[Brooke Roeder]

Investment Info:

Single-family residence fix & flip investment in Austin.

Purchase price: $240,000
Cash invested: $130,000
Sale price: $470,000

True fix & flip project. This home was dilapidated, a former cat-hoarder house, in an up-and-coming area of South Austin. Full top-to-bottom renovation.

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

I sold my vacation rental management company to focus more full time on fix & flip and development projects.

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

Wholesaler that I have a great relationship with. Moved fast.

How did you finance this deal?

Private investors + personal cash

How did you add value to the deal?

Top to bottom gut renovation

What was the outcome?

Smashed sales price record in the neighborhood

Lessons learned? Challenges?

ALWAYS INSPECT THE SEPTIC TANK prior to closing. Even if you're buying wholesale and have no option period/would lose your deposit if you back out. No obvious signs of septic failure (clogs, back ups, etc), but it turned out the tank was compromised. Project still profitable but it could have been a disaster in a different situation with smaller margins.

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

I acted as the realtor and developer on this project.