My first fix and flip (Wish I had done the BRRRR method)

[Giancarlo Paone]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $240,000
Cash invested: $100,000
Sale price: $375,000

My first investment property purchased during my senior year of college.

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

Was able to negotiate the purchase price down after distressed property was sitting on MLS for over 6 months. Sellers motivation was a divorce so we had leverage

How did you finance this deal?

Financed deal using a combination of my saved money and a loan from my parents using a home equity line of credit.

How did you add value to the deal?

Added value through finishing basement, adding second bathroom, finishing hardwood floors, adding new cabinetry and countertops, and landscaping

What was the outcome?

Overall I made a profit but not as much as I had hoped

Lessons learned? Challenges?

Outcome was not as effective as I had hoped since property was bordering a flood zone and buyers were weary about purchasing. Initially thought we would sell for over $400 but instead sold at $375. Additionally, some asbestos found in basement increased the reno price.