First Flip $60k profit but a lot of headache lol

[Hoa Nguyen]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $88,000
Cash invested: $25,000
Sale price: $179,900

Found this deal from another agent who was initially going to list on the public market, but thought of me prior to doing so. The property was in a great market but needed full cosmetic rehab and a basement finish to add an additional bedroom which in return would bring up resale value. Rehab took 5 Months and was done 90% by myself. Saved about $30k doing myself, but also lost a lot of time. Moving forward I will start analyzing deals based on potential contractor prices. The property sat on the market for a month before receiving an offer, however, the initial buyer backed out on the day of closing. Luckily, interest rates dropped by the time of relisting and we found another buyer within 3 days of relisting. Property closed and profit pre-tax, was $60k. I was able to use a chunk of that to invest into the next one which set to profit $100k. Keep an eye out for a post about that one ;)

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

Being an agent I knew the market and the potential it had.

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

The deal fell into my lap. I posted on Facebook that I was looking to buy a flip, and a fellow agent sent me some details about a property she was going to list.

How did you finance this deal?

Hard Money finance, with about $5k of my own funds going into some over-budget costs.

How did you add value to the deal?

Full cosmetic rehab, added AC, new electric, new waterlines, and added a finished room in the basement space.

What was the outcome?

$60k profit pre-tax. And A LOT of learning lessons.

Lessons learned? Challenges?

1. Will not be doing the work myself again
2. Plan for the unexpected
3. Whatever the initial budget is, plan for 20% more.

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

I was the agent, so I recommend myself for all your southwestern IL investments.
I used Three Doors in St. Louis for the hard money loan. Their fees and interest rates were high, but they had the least restrictive approval terms from what I gathered.