346 Portland Blvd (3rd Flip)

[Austin Ellery]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $78,000
Cash invested: $182,000
Sale price: $235,000

From the listing:

Beautifully renovated home in the heart of Portland. Large back yard with covered porch perfect for entertaining or relaxing. Walk to downtown Portland and Richland Park. Storage buidling with work bench to remain. 3D Virtual Tour in the media section. All new plumbing, electrical, flooring, insulation, and drywall, among other upgrades.

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

I have been working along side a business partner doing fix and flip deals. This one caught our eye big time because it was in an up and coming area that was booming with real estate. It was listed for less than 24 hours before our offer was accepted.

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

This was another deal that I found off of Craigslist from a wholesaler. Craigslist has been a great place for me to locate deals from local wholesalers. The property was originally listed for $76k and it had a ton of interest right off the bat so we offered $78k. Our offer was an all cash offer with no inspections and no contingencies which gave our offer a huge advantage.

How did you finance this deal?

This was another all cash deal that didn't need the assistance from private or hard money lenders. Both the purchase of the property and the rehab were covered without having to use any loans.

How did you add value to the deal?

This project was completely trashed on the inside and out. We reframed the entire interior of the property, as well as, leveled the floors with new subfloors throughout. Everything from there on out was brand new. New plumbing, electrical, insulation, drywall, paint, fixtures, appliances, etc.

What was the outcome?

The outcome on this was another positive deal for my business partner and I. We listed the property for $235k and received multiple offers the first few days with some exceeding $240k. However, the best deal we ending up taking was for $235k because of the terms offered with it. All in all, we ended up profiting just over $38k after closing costs and other fees.

Lessons learned? Challenges?

Just like every flip I have completed so far, every project teaches me a ton of new lessons. This one was especially difficult because it was located in a small town that had very different regulations that posed some issues down the road. In these smaller towns, the building code department was much different than the larger county in Nashville. Inspections took longer and they were much more strict on what passes and doesn't. These inspection delays added a month but it was manageable.