First Time Fix & Flip

[Nigel K Mitchell-Thornton]

Investment Info:

Single-family residence fix & flip investment in Lithonia.

Purchase price: $75,000

Cash invested: $25,000

Sale price: $144,900

Long time viewer, first-time poster… I have been a part of the Bigger Pockets community for a while and have read a lot of different posts from members and listened to a multitude of podcast. I have recently completed my house hack turned fix and flip. Since I recently closed, I am finally happy to post about it.

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

The thing that made me interested in investing in this deal was the possibility of getting a house that was 50% off. But after doing all the work for the flip and seeing the numbers come together it quickly turned into a passion of something I wanted to do long-term, and make a career out of it.

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

The way that I found this deal was searching through the GNND website for almost a year. I was able to negotiate it by completing the steps for the GNND program and finding financing. On the back end, I was able to negotiate the closing of the home by offering to help the buyer in closing costs more than what was expected.

How did you finance this deal?

I first financed the deal through an FHA loan. I paid for all of the repairs for the home out of my own pocket by working extra jobs, and saving up my money.

How did you add value to the deal?

I was able to add value to the deal by doing research on a type of upgrades people wanted in their home. After researching I was able to put the right items in the home that would appease and standout to most buyers. The major repairs to the home included the following: laminate wood floors, carpet, paint (interior & exterior), new plumbing system, granite countertops, cabinet re-facing, new vanities, new appliances, fence, and some other small things.

What was the outcome?

Overall profit from project

$144,500 - ($45,000 + $25,000) = $74,500

Total loan from purchasing through Good Neighbor Next Door Program

$45,000

This includes 50% off through the GNND, plus closing and repair costs.

Total repair cost to home

$25,000

Lessons learned? Challenges?

Some of the lessons that were learned in this deal truly opened my eyes to what real estate investing is all about. Some of the most standout things had to deal with making sure the numbers are correct on the front end so that if unforeseen expenses come on the back end it will all be covered. Get quality and like-minded individuals to assist in your deal otherwise you'll waste time bumping heads.