Deanwood Fix and Flip

[Brian Beck]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $265,000
Cash invested: $140,000
Sale price: $500,000

This was our second flip purchased (3rd sale), by far our least profitable but the one from which we probably learned the most.

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

The scale of the project was greater than anything we'd worked on previously, at least in terms of an investment, we were also wanting to keep the momentum from our first flip going.

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

MLS thru an agent who's partnered with us before.

How did you finance this deal?

Cash and Hard Money Loan

How did you add value to the deal?

We went up a level to add a true master suite, additional bedrooms/bathrooms.

What was the outcome?

A very long and drawn out permitting process and closing process. bea

Lessons learned? Challenges?

A lot of lessons learned in terms of time/holding costs on projects of this size. A lot about DCRA permitting processes relative to the ease in most of the Virginia jurisdictions, didn't forecast the length of time it would take to sell given the price point/neighborhood (not nearly as quickly as our $400K home last year), definitely something we'll consider before another project of this scale, lastly, we learned a ton about the DC Downpayment Assistance Program and time/bureaucracy involved.

[Brian Beck]

Thanks @Russell Brazil !I definitely learned my lesson on the DCRA permitting, it was at least double the time it would've taken me to get the same permit/scope approved in Virginia. The extra $50K spread would have been nice on this one. That in mind, definitely learned a lot from this one, looking forward to doing more in both NoVa and DC! I appreciate your information on the spreads you look for, I was looking for $225K in DC and $175K in NoVa but it wasn't seeming to leave much wiggle room, I was thinking about increasing my target spread but want sure if that was too large a spread, knowing that you look for that range helps tremendously in that I know I'm not crazy looking at those numbers haha. Now it's just a matter of finding them!

By the way, I appreciate the local focus you and Kevin provide, it's nice having a DC- centric perspective every now and again.