402 N Peterman Road - First Fix and Flip

[Josh Keen]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $100,000
Cash invested: $31,000
Sale price: $170,000

2 Bed, 1 bathroom single family residence. Little house on the corner of an intersection. Needed general repairs, updated, and bringing back to life.

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

Personal connection through family. He was getting low balled by flippers and I offered him the option of subject to financing. The deal ended up being a 6 month term with 10K down and the final balance due at the end of 6 months. This way he could get the selling price that he needed/wanted in order to get out of the property. We took over the monthly payments, and got the house rehabbed and sold inside of our timeline.

How did you finance this deal?

Subject to financing

How did you add value to the deal?

Rehabbed the property. New flooring throughout, painted the walls, trim, ceilings, re-piped, closed in the water heater and furnace to make a more appealing mud room space, painted the cabinets, new hardware on the cabinets, new dishwasher.

What was the outcome?

We sold the property for around a 30K profit after closing costs, paying back our investor, etc.

Lessons learned? Challenges?

Lessons learned: try not to have your first flip property be 6 hours away and do 90% of the work yourself while your wife is pregnant with your first child. Makes it a lot more stressful!

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

Greenwood Homes Realty