First Flip Experience

[Noah Lomax]

Investment Info:

Condo fix & flip investment.

Purchase price: $236,000
Cash invested: $80,000
Sale price: $495,000

We found a 1bd/2ba condo with 1,400 sf private terrace in Chicago's Gold Coast neighborhood that went into foreclosure. I had been in touch with the listing agent prior to it going live, and we pounced them moment it was on market. We did a full gut, redoing both bathrooms, the kitchen, and adding a bedroom. Working with supply chain issues and inventory shortages was a headache, but we had a good team and prepared for each challenge.

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

We actually started the project as a buy & hold, but learned only just before closing that the HOA didn't allow for renting in the first year. It was a quite a shock, but we were able to pivot quickly and do really well.

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

I found the property on Fanny Mae's app.

How did you finance this deal?

Remaining funds in a 1031 Exchange

How did you add value to the deal?

Full-gut rehab

What was the outcome?

We had the property fully rehabbed and on-market with in 58 days of closing. It was a crazy amount of work, but a great experience! We priced low, had multiple competing offers, and sold above asking.

Lessons learned? Challenges?

HOA's are a real headache, even if you are following every rule to a t. We had a neighbor that was very difficult throughout the process. In hindsight, I wish I had engaged them before we started and built a relationship. I'm not sure it would have mattered, but it would have been great to know.

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

Nick Libert with Exit Strategy is phenomenal. He worked his *** off to close this deal. I worked with the incomparable Jason Montoya, using a Fix & Flip loan from Finance of America. My builders were RJ Delejon with EJC Partners and Kenny Arnao with Arnao Development. I could not say enough good things about these guys!