My first flip and rent

[Dustin Scobell]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $82,000
Cash invested: $10,000

1400/month rental. Took eight months to flip it with my cousin and business partner, Justin.
I lived here during that time.

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

The pandemic stopped me from waiting tables, so I figured it was time to pivot and go bold.
I was in the process of leaving a 13-year-long relationship, and I decided a gigantic distraction might be a good thing.

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

Zillow. Less than a month after the lockdown began, this posted at 6am. My cousin and I couldn’t get a walkthrough scheduled because they had already booked up and they were very strict about overlap and visiting conditions.
So my cousin and my realtor and I just went up anyway and helped ourselves in between two appointment time slots.
There were 6 other offers. Our realtor had his accepted because he reached out and asked how much time the owner wanted to move out. He made a personal appeal

How did you finance this deal?

Acre mortgage

How did you add value to the deal?

New floors, new carpet, new walls, new kitchen, updated electric and fixtures, deep cleaning and general repair

What was the outcome?

A property value increase of about $150k to borrow against, and a longterm tenant who works at a hospital two blocks away. My realtor manages the property. I am entirely hands-off.
$1400/month cash flow. $500/month expenses. $140/month for property management. Netting $560/month to reinvest and cover future repair costs.
Made a bunch of friends in the neighborhood.

Lessons learned? Challenges?

I like to tackle a new challenge myself first, so I can really understand the value of hiring out the work. We saved tens of thousands doing everything ourselves, but it took eight months with no cash flow.
Now I pick and choose what projects to sub out vs do it myself.
Living at the property was an incredible experience, but it may have contributed to procrastination.

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

Grimly Foret 100%
I owe everything to him. Realtor, property manager, and friend.
An advisor, an outside-the-box thinker, someone who GETS IT DONE!