Fix and Flip > $100,000 Gross

[Alan Hon]

Investment Info:

Single-family residence fix & flip investment in Micanopy.

Purchase price: $160,000
Cash invested: $140,000

We purchased a distressed, bank owned, property on a lake between Micanopy and Gainesville Florida with the desire to launch our STR business. It was recently given a Market Value of $420,000 and has generated nearly $20,000 in STR income in under a year with little marketing.

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

Having done several projects in the Midwest, I wanted to move my business to a warmer climate.

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

We worked with a Realtor who showed us this REO that already had several offers on it. We made an all cash offer that put us on top of the pile and secured the property.

How did you finance this deal?

Cash

How did you add value to the deal?

My slogan has always been "It Doesn't Take Eyes to See, It Takes Vision". The value I add to EVERY deal is the ability to see through the walls of a project. Seeing through the walls allows me to see the potential of each project I do.

What was the outcome?

This property was recently given a Market Value of over $400,000 which would be a gross gain of more than $100,000

Lessons learned? Challenges?

While I had two crews working full time in the midwest, I didn't have those connections in the area I did this project in. My biggest challenge was finding skilled, reliable labor. The lesson learned was one I learned in working with a builder who built more than 100 homes per year. Budget for quality, reliable labor. You may make less on each project but will more than make up for it by being able to do more projects with less stress.

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

Sadly no