First Flip - Tobacco Trashed Home into Cute Mid-Century Modern

[Bethany Turon]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $100,000
Cash invested: $26,000
Sale price: $165,500

This was my first flip. Purchased as a Short Sale and was able to net a $39k profit. It was trashed and reeked of cigarette smoke. We did almost all the work ourselves and were able to complete the rehab portion in 6 weeks.

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

Hybrid BRRRR works best for us, SFH appreciate better than MFH, so the idea was to use the profits as seed money to purchase B&H MFH.

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

This was off MLS and I submitted a cash offer waiving inspections.

How did you finance this deal?

I used cash and did an interest only mortgage after we closed.

How did you add value to the deal?

Full rehab

What was the outcome?

We had 14 offers in 2 days, all at or above asking. We went with the one who was able to waive inspection and go conventional. Appraisal came in $1,500 under contract sales price. $39k profits were solid!

Lessons learned? Challenges?

This was the first time doing LVP and I ordered off Wayfair. We went with glue-down flooring which probably took at least 4 times as long as click-lock.

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

Tony Poulin at Meservier was the agent who negotiated this and helped with determining what to choose in the rehab design.