Denver Heights, SATX

[Daniel Kitt]

Investment Info:

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

Purchase price: $112,500
Cash invested: $65,000
Sale price: $215,000

Two houses on one lot. Front house 3/1 and back house 2/1. Total gut rehab added HVAC as well as new roofs to both houses.

Delay in rehab caused by Texas freeze that occurred in February of 2021. Insurance claims held us up for months!

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

Initially bought as a buy and hold. Good cash flow because of the two houses on one lot.

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

Wholesaler

How did you finance this deal?

Hard Money converted to private money.

How did you add value to the deal?

Total rehab. New electrical, new plumbing, added HVAC, and new roofs on both properties.

What was the outcome?

Initially was bought as a buy and hold, but the Texas freeze in February 2021 caused so many delays and extra expenses. It was determined that selling it as a flip was the only exit option.

Lessons learned? Challenges?

Glad I had multiple exit strategies. Vet the insurance companies before you buy a builders/construction policy. They are not all the same. Many of these companies policies are written, so they do not have to pay you for a claim. I am still fighting the insurance company with an attorney