All Forum Posts by: Cassidy Burns

Congrats @Brian Beck , what about the margin? Thats usually what I use to evaluate a renovation project: 

Total Profit / Purchase price + closing costs + construction costs + holding fees + closing costs + realtor fees = ???

I"m always interested to see what developers margins are.

Congrats again. 

This is a decision you ultimately need to make, but I think it's always a better plan to have a reserve, life happens, ESPECIALLY now.

I'd personally suggest waiting until you have $10,000 in reserves before doing this.  So that means you need to save a total of $22,000.

Good luck.

Great job, what was your final margin?   Congrats.

Hey @Kyle Spears , I personally think there is still value and multiple DC neighborhoods in the condo market.  Really depends if you are going to house hack or not.  Single families in this market are FLYING off the shelf and people are starting to go a little "competition crazy" and overpaying.  Key is , buy value.  Current Rental value,  long term rental value, and hopefully potential appreciation value.  

People are buying and selling real estate every day in Washington DC, just make sure you are following this value concept and you will be safe.  

Thank you @Dave Spooner

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $61,950
Cash invested: $61,950
Sale price: $148,100

Fix and Flip Project:
-3 bed/ 2 bath
-Basement
-Purchase Price: $61,950 (Online auction)
-Appraised Value: $124,000
-Rehab Budget: $28, 497(Labor, HVAC, new water heater, paint throughout, new counter tops, appliance package, 2 light bathroom Renos)
-Holding Costs: $1,500.86
-List Price: $145,000
-Outsell: $148,100
-Realtor Fees: $8,886

All In: $115,382
Outsell: $148,100

Total Profit: $32,717

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

Great margin!

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

Foreclosure, submitted lower offer, took around 2 months to get ratified.

How did you finance this deal?

2 Investors funded the entire project. They received a 17.7% IRR on the project

How did you add value to the deal?

Purchase: $61,950
Appraised when we bought: $124,000

$29,000 Rehab

Sold for $148,100

What was the outcome?

28% Margin
$32,717 profit

Great project

Lessons learned? Challenges?

Had to fire 2 contractors
COVID put us 3 weeks behind schedule
LOCATION LOCATION LOCATION

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

Yes, Lisa Brown from Highlands Realty out of Clifton Forge, VA. She did great.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $61,950
Cash invested: $61,950
Sale price: $148,100

Fix and Flip Project:
-3 bed/ 2 bath
-Basement
-Purchase Price: $61,950 (Online auction)
-Appraised Value: $124,000
-Rehab Budget: $28, 497(Labor, HVAC, new water heater, paint throughout, new counter tops, appliance package, 2 light bathroom Renos)
-Holding Costs: $1,500.86
-List Price: $145,000
-Outsell: $148,100
-Realtor Fees: $8,886

All In: $115,382
Outsell: $148,100

Total Profit: $32,717

Went a little over budget, project took longer than expected, but ended up selling for $15,000 more than we anticipated! Great project.

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

Great margin!

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

Foreclosure, submitted lower offer, took around 2 months to get ratified.

How did you finance this deal?

2 Investors funded the entire project. They received a 17.7% IRR on the project

How did you add value to the deal?

Purchase: $61,950
Appraised when we bought: $124,000

$29,000 Rehab

Sold for $148,100

What was the outcome?

28% Margin
$32,717 profit

Great project

Lessons learned? Challenges?

Had to fire 2 contractors
COVID put us 3 weeks behind schedule
LOCATION LOCATION LOCATION

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

Yes, Lisa Brown from Highlands Realty out of Clifton Forge, VA. She did great.

Hey @Greg Moran , hope all is well.  

Just send me an email with the address and I'll send you the values.

Talk soon

Don't reinvent the wheel.  Pick a strategy and become the expert at it.  It will get easier and easier.  Oh yeah, and write that goal down every day, and it will happen.

Good luck!

@Jeffrey Page sounds like an awesome deal.  I would allow yourself an out option just in case.  Essentially you are going to have terms in the agreement that will allow you to pay the seller, in this case your relative the $115,000 in full once you decide to go long term financing (if you ever want to).  

Its just a shame to have the $200,000 tied into the property and not being able to tap into it.  Otherwise, as long as your rehab costs are reasonable, seems like a great first deal for you.

Good luck