Triplex Flip - First REI Endeavor

[Christian De Los Santos]

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $275,000
Cash invested: $220,000
Sale price: $675,000

This was my first fix & flip. I had a partner that provided cash for the purchase of the home and an investor that we used for the rehab cost. I operated full-time as a project manager for the construction.

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

I have been listening to BP and other REI podcasts / reading many books for the last 5-7 years. I decided that it was time to search for a deal of my own. Initially I wanted to employ the BRRRR method but was unable to find a solution to hold the property as we needed a quick ROI to payout investors.

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

Working with an investor friendly realtor. We negotiated with the homeowner and were able to secure the home with a strong cash offer.

How did you finance this deal?

Partner that purchased the home in cash and an investor that loaned money for the rehab.

How did you add value to the deal?

I brought value by managing the rehab / contractors.

What was the outcome?

After all fees and expenses we produced an ROI of $88,000

Lessons learned? Challenges?

- Find strong / reliable contractors
- Do everything the "right way" / Don't cut corners
- Trust your gut
- Do not be liberal about your predictions. It is better to be conservative and come out on top than be liberal and make less than you anticipated

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

Our buying agent was Tina Swonger. She was excellent in talking us through our options on a first fix & flip.

Our listing agent was Scott Sufak. I highly recommend him as he has extensive knowledge on the COS market and can give excellent guidance for investors & residential buyers or sellers.