Early Pandemic Flip in Covington KY

[Jennifer Dyer]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $47,500
Cash invested: $75,000
Sale price: $195,000

Flipped in 6 months. Purchased July 2020 for $47.5K, closed in Jan 2021 for $195K. Purchased on Auction.com sign-unseen using photos from previous listings and area data only. Total time end-to-end 6 months, pretty great considering the labor and material shortages!

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

Looking for a flip during the pandemic. We were working remotely so it allowed us opportunity to go out of state.

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

Found it on Auction.com for $47.5k.

How did you finance this deal?

Hard money loan through We Lend LLC. Financed 85% of purchase price, 100% of construction.

How did you add value to the deal?

Full gut rehab

What was the outcome?

Rehab took almost 4 months, putting it on market around Thanksgiving. Sold by Christmas, closed January 2021 for $195,000.

Lessons learned? Challenges?

Early pandemic materials and labor shortages. No vaccine yet, everyone was getting sick. Cost of lumber was sky high, and appliances were backordered. We purchased the appliance package from Home Depot, and over time, each appliance was canceled and reordered more than once to meet our deadline. We ended up finding everything at Best Buy in the end.

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

Hinsford Building and Construction
Adam Rosenhagen H/R Real Estate Llc