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.