Updated over 4 years ago on . Most recent reply
Live in Flip Townhouse with high equity forcing rehab 🚀
Investment Info:
Townhouse fix & flip investment in Mcallen.
Purchase price: $102,000
Cash invested: $30,000
My first personal deal! Learned a ton and was able to find something I could force the equity increase. Now, I have something to leverage capital on for future deals.
How did you find this deal and how did you negotiate it?
This property came across the table after one of my team and I conducted a direct mail marketing campaigns. We sent out about 1,000 direct cash offers to sellers that met our criteria in certain areas. The seller was looking to liquidate after holding this townhouse for a long time and was tired of dealing with tenants at this stage of their investing. Previous owners had done a fantastic job of taking care of the property with a solid long term tenant.
How did you finance this deal?
I financed this deal with leveraging private money to help with the purchase and then I had cash for the rehab.
How did you add value to the deal?
So, when I picked it up most of the work was cosmetic (paint, flooring, fixtures, etc.). With the purchase price so sweet I was able to go a little more upscale and modern on the rehab to force approximately $50k in equity right from the start. SLAM DUNK!
What was the outcome?
Now, I'm able to live in it with a low payment and lots of equity in a very appreciating part of central McAllen TX. My next step is to possible Air BnB proof it with certain locked cabinets and locked storage space that will allow me to easily prepare it for AirBnB on the weekends. I'll live there during the week and pick a few weekends a month to get some cashflow and help pay for the mortgage.
Lessons learned? Challenges?
I've also looked at my ability to refinance and pull out my equity to use for my next property. With rates so low right now it's a no brainer to get some long term cheap locked in at a low rate.
Lots of options when you buy right!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am an agent in McAllen, which helped have the market knowledge to know how good this deal was.
