My first SFH Fix and Flip

[Nathan Wierzgac]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $209,000
Cash invested: $60,000
Sale price: $325,000

My wife and I accomplished our first fix and flip successfully! I've recently gotten into real estate investing earlier in 2021. After about 2 months of constant learning I jumped in and acquired our first property. Let me tell you, making the decision to put the down payment and property under contract was incredibly intimidating... BUT I am thankful that I made that leap of faith to push myself and grow. Extremely excited to see what we can do next year!

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

There were some recent flips in the area that I already new were similar to this property.

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

I found this deal through a wholesaler who brought it to me asking for $225,000. I found that when I estimated my rehab numbers and holding costs that to make the deal work for me I needed it for $15k less. I was able to negotiate the deal down to a purchase price of $209,000

How did you finance this deal?

Hard money for 80% of the purchase price + all rehab costs and private money investor for the remaining 20% down plus holding costs.

How did you add value to the deal?

- Both bathrooms brand new top to bottom
- New flooring and painting throughout the whole house
- Updated kitchen with custom island and all new appliances, granite countertops
- New lighting fixtures
- Opened up the floor plan, etc...

What was the outcome?

We went over our rehab budget by about $5k. Total net on the project was about $35,000... Success!

Lessons learned? Challenges?

Lesson: Account for at least 10% contingency in your rehab budget for unknowns. When we went to put new flooring in we saw that we needed to redo all the sub-flooring as well which added a few thousand.

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

- Branco Theis was the realtor that sold the property after completion. Highly recommend him in the Raleigh/Durham area.
- HouseMax Funding was the hard money lender I used and I actually found them through this website. Very easy to work with especially for beginners.