3 Unit Cottage Flip in Jacksonville FL

[Ian Brown]

Investment Info:

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

Purchase price: $50,000
Cash invested: $25,000
Sale price: $125,000

3 separately metered units, each 1bd/1ba cottage, on single tax parcel with heavy deferred maintenance. Wholesaler in Jacksonville emailed me with the opportunity

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

I had labor ready and needed a quick project, this was a good fit at an easy price point

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

Wholesaler

How did you finance this deal?

$50k purchase price, private (individual lender funded $60k (purchase price + most of reno) for 10.5% interest only for 12 months.

How did you add value to the deal?

Finished a tough ongoing eviction for the seller.

Reno: Heavy. Evictions, five dumpsters of materials removed from property, new floors, replaced bathroom floor joists, replaced staircase on rear buildings, new driveway, replace counters, water heaters, electric upgrades, vanities, paint, fans, blinds, appliances.

What was the outcome?

Cash sale to Canadian investors

Lessons learned? Challenges?

Be careful with permits! This project got shut down temporarily by city b/c water heaters and minor electrical work was done w/out permits. The time saved in not pulling permits is quickly offset by city shutting down your project, so when in doubt, pull em!

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

Brokered on my own behalf