Cincinnati OH (Madisonville) Flip

[Jordan Noble]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $125,000
Sale price: $262,500

Purchase Price: $125k from a wholesaler
Purchase Closing Costs/Rehab Costss/Holding Costs: $78.5k
Selling Costs: $17.5k

Sale Price: $262.5k
Profit: $41k

2bed/1bath Cincinnati cottage with 1,049 square feet and a one car detached garage

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

This deal was from a wholesaler who posted it in a local facebook page - i believe i paid his asking price at $125k or I might have been $5k-$10k below the asking price but regardless bought it for $125k

How did you finance this deal?

Financed this deal with Hard Money Lender (Kiava) and put 10% down of the purchase price and financed 100% of the rehab at 9.5% interest (cant remember how many points i paid)

How did you add value to the deal?

Full rehab

What was the outcome?

Sale at $262,500 for about $41k profit

Lessons learned? Challenges?

Biggest lesson learned on this property was to just replace a furnace if it needs it. I tried to hang on to a 15 year old furnace and get it serviced and ended up spending over $1k on service before it finally completely blew and had to get replaced anyway. furnaces are an easy swap when not doing any ductwork and it really gives the property a finished feeling to the end buyer when they dont have to question any of the mechanicals.

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

Kiava is a lender i wouldnt recommend. it was a real pain to get construction draws and relative to other HML i have used now they have expensive fees