First Fix and Flip Residential Property

[Kweli Webster]

Investment Info:

Single-family residence fix & flip investment in Nashville.

Purchase price: $225,000
Cash invested: $30,000
Sale price: $294,000

1965 Single Family home. 3 bed 2 bath w/ den. 1640 sq ft.

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

Ran across this home on the MLS that I knew was a steal because I familiar with the comps in the neighborhood. Price was listed 50k under appraisal price. It needed work, but had great bones and was a good flip

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

MLS. I'm an agent and seller was eager to get rid of home.

How did you finance this deal?

Hard Money

How did you add value to the deal?

Opened the floor plan, added a bathroom, remodeled the kitchen, strip and stain the original hard wood floors, painted, and upgraded fixtures.

What was the outcome?

Closed over asking price

Lessons learned? Challenges?

Lessons - I love the feeling of flipping homes, but I would like to find investors to invest in my flips and hold on some properties to be build my profolio. I know you have to spend money to make money, but my money is not long like I want and I know it’s a better system.

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

Yes, myself.

[Don Gouge]

Maybe I am missing something here but you purchased a property that was 50k under appraisal and invested 30k in it and sold it for 69k more than you paid for it. Were you the listing and selling agent both? How much did the hard money cost you? If the appraisal was correct , you lost at least 11k by doing the remodel as opposed to selling if for the initial appraisal value.