Flipping in a new market! Raleigh NC

[Patrick Knapp]

I currently have two properties I acquired that are currently undergoing renovations (I'm a licensed General contractor). I specialize in flipping homes, I usually invest in homes around Fayetteville NC where I moved away from. Raleigh has become one of the best and hottest markets in the US right now so it's a great time to sell.

I'd like to take you on this journey with me to talk the numbers, how I found the deal, what went wrong, did I stay within my estimated budget and what the end result will be.

Attached below is the link to see the 3D imaging of the home.

https://my.matterport.com/show/?m=eCbBcwVJjqS

So first off many probably are wondering "Patrick are you rolling in the dough and you bought it out right, or did you use leverage?"

With this deal and like many I used hard money lending. I find it to work well with my investments being I plan to have enough meat on the bone to not stress about losing 10k in profits. This allows me to focus my funding on more than one deal at a time.

Deal one

Purchase price is 235k

Rehab budget originally was set for about 20k

ARV/Comps show I should with the market today be able to get 330k when flipped correctly.

Deal two:

Purchase price 200k

Rehab budget 25k

ARV/comps $299k

I have currently started already on deal one and writing for owner to move out"lease back" on deal 2.

While waiting for the renter to move out on deal one, we focused on painting the brick and get the landscaping in order. Boy did I really **** my self over on the landscaping budget. All I could think was how I needed to be just as nice as the next door house, which was sold by a homeowner who way over did it. The issue I have is that it sold 6 months prior to me starting work and sold for 281k which is 50k less. The market has changed quite a bit since December as we all know. So I went 5k over budget "rookie move".

We are now in the phase of tear out and prep. Do ill keep you posted!