Fix and Flip in Tennessee

[Austin Ellery]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $66,000
Cash invested: $64,000
Sale price: $182,000

Full gut flip that was completed in 2021. We did everything new in this place. New windows, siding, roof, gutters, front and side porch, landscaping, electrical, plumbing, cabinets, granite countertops, HVAC, etc.. Turned out amazing and we ending up receiving 10+ offers within 48 hours. After a few of the offers fell through and we went back on the market multiple times, we ended up accepting an all cash offer with no contingencies or repair requests!

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

My business partner and I primarily invest in fix and flip deals. When this deal presented itself we jumped on it!

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

Our realtor brought this deal to us. He found the deal through a wholesale group based in Nashville. They were asking $62k but had multiple offers on the table. So we offered $4k over asking.

How did you finance this deal?

We use all cash to fund our deals. It makes our offer that much sweeter and gives us the ability to close as quickly as possible. We also purchase with no inspection or contingency periods; which also makes our offer stand out better.

How did you add value to the deal?

We did a complete overhaul on this property with all new mechanicals and cosmetics throughout. Most of these small houses in the area are less than 900 square feet and don't have a proper laundry room. The washer and dryer usually just sit out in the open. We were able to re design the floor plan to allow for a laundry closet that was out of sight and out of mind so it wasn't an eye sore. This was a huge selling point for potential buyers.

What was the outcome?

This was a perfectly executed flip pertaining to the purchase and sale of the property.

Purchase: $66,000
Rehab: $64,000

Sale Price: $182,000
Closing Costs: $11,375

Profit: $40,625

Lessons learned? Challenges?

This was our third flip with this contractor and unfortunately we caught him in a lie. There was other houses being flipped on this street and the roofing company had mistaken our house for one they were installing a new roof on. They put a new roof on our house and since they mistakenly did this, we got the roof for free. Our contractor still tried to charge us for the roof and we caught him lying about it. This created a lot of tension stress at the end of the project.