All Forum Posts by: Coley Mitchell

Well, what started as a BRRRR deal with a partner ended up a fix and flip due to the crazy market here in Greenville. Would have still worked great as a BRRRR but with everything going on, we decided to cash out now so we can chase bigger stuff.

Here are the key stats:

• - 2/1, 945 SF house in Sans Souci neighborhood of Greenville, SC
• - Purchased from a wholesaler for 65K cash
• - Final rehab budget came in at 57K - basically new everything minus the major systems, had to replace subfloor/ a few joists in bathroom due to previous leaks, removed a wall between kitchen and living room, new appliances (minus fridge), new patio, privacy fence, removed trees, vapor barrier, insulation in crawl space, etc)
• - Sold for 160K in 3 weeks
• - Netted about 24K after holding costs, commissions, closing costs, etc
• - Entire process (initial purchase to closing) took about 6 months

Biggest lesson learned: we did too much!  Adding the new vinyl shakes to front of house to boost curb appeal, cutting down all the large trees on side of house (1-2 would have been fine), and perhaps some of the detail in the finishing really wasn't needed.  Could have easily left another $10K in our pockets as a result.  Overall this was a very small project for our contractor, but they really delivered a turn key experience with quality finishing.  Also did not make us pay a dime until they were done in an effort to win our business which was pretty sweet.

Not exactly earth shattering numbers but the experience overall was highly positive.  Now have a solid network of contractors, agents, wholesalers, closing attorneys, etc. as well as the start of a great partnership.  Biggest benefit was the confidence built by doing the first project.  At end of day, it really isn't that scary... just need to commit to analyzing deals and pulling the trigger when the numbers make sense.

Before pics:

After:

Let me know if you have any questions!

Are you planning to use hard/ private money or looking for seller financed deals?  First step is to figure out a price point you can afford, then start looking for the areas that have houses within your budget.  Once you identify a few, go and drive them and see how the areas look.  For me I want to see decent activity in the area (look for dumpsters and some freshly rehabbed houses) so that I'm not the first one in.  Some of the neighborhoods that I like in Greenville are Sans Souci, Nicholtown, Dunean, West Greenville, etc.  Thanks and good luck.

Appreciate feedback @Account Closed.  Yes, it is def "cosmetic ugly."  Layout is pretty good actually.  Would remove a couple a half walls and could have a very open, flowing floorplan.

I'm looking at a house tomorrow as a potential next value-add project (either flip (primary) or BRRRR (secondary)) that can only be best described as "ugly." Was built in early 60s and if I had to categorize the style would say poorly executed art-deco. It is smooth stucco with a flat roof. It is definitely VERY different than the typical ranches and craftsmen style homes in the area. That being said, the numbers are interesting. In my initial analysis I factored in a 10% discount for being ugly. Is that enough? Anyone have experience trying to flip an ugly house in a great area?

@Timothy Dail the advantage of hard money is that you can get funds to cover the purchase and the rehab upfront based on the ARV. You also have to consider that many brrrr deals cannot be financed with conventional loans due to the poor condition of the property. Using your example of 15% down for a conventional investment loan (down payment sounds light to me) you wouldnt have any room to get a heloc as the best ones tap out at 90% LTV. On a 100k property you would be leaving yourself with 5k to pay for rehab and cover closing costs. Not gonna happen.

Nice work Aaron! Hoping to post about my completed BRRRR project in Sans Souci in Aug/Sept. Let me know if are ever in Greenville area and want to have a beer.

@John Weir Hello and welcome! Where are you moving from?

For anyone interested in learning more about wholesaling, check out Max Maxwell.  He has been on the BiggerPockets Business Podcast I believe.  Can learn everything you need to on wholesaling from him.  He is @therealmaxwell on Instagram.  Can also lookup his youtube channel - has a ton of content.

Call @Michael Smith at the Bluefield Group.  He is the principal if a fast growing, well organized firm here in town.  He represented me when I purchased my primary residence in Greenville and for my first investment property as well.  They also do in-house property management.  He is also very well connected with anyone you would need to build an effective team in area (contractors, attorneys, etc).  Good luck!