East Nashville Flip - First Project Beyond Cosmetic

[Andrew Austin]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $275,000
Cash invested: $80,000
Sale price: $535,000

This flip had some unique challenges, including a shared driveway and a railroad crossing directly behind the property. Despite these built in challenges, the curb appeal was fantastic and the interior was charming. We removed carpet to refinish floors, moved 3 walls, added a split HVAC unit, and finished the attic to add a master bedroom and bath. A great learning experience and most ambitious and successful flip.

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

I had completed a few flips before, but was interested in moving beyond a simply cosmetic flip in hopes of adding more value.

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

I found it through a wholesaler. I accepted their $15,000 fee in order to beat out other interested investors.

How did you finance this deal?

Private loan.

How did you add value to the deal?

We refinished the floors, added a master suite in the attic, fully updated the bathrooms and kitchen with new tile and appliance, added a new roof, and new plumbing and electric throughout. By the end, we basically had built a new home in the bones of a 1930 house -- while retaining some of the original charm.

What was the outcome?

We sold the first weekend over ask and with only a pass/fail inspection, largely thanks to the curb appeal and proximity to walkable restaurants and attractions.

Lessons learned? Challenges?

Unique challenge were the shared driveway, through which I learned the importance of a good demo and dumpster strategy for a project that size. I also was building a contractor team through referrals and should've spent more time interviewing subs.

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

I am a licensed realtor, but the buyer's agent was fantastic to work with and was quick to communicate any concerns that needed answering.