A constant headache - but learned SO MUCH

[Matt Pursley]

Investment Info:

Single-family residence fix & flip investment in Okoboji.

Purchase price: $85,000
Cash invested: $65,000
Sale price: $210,000

Took a year and half to close with the seller. A hoarder property in total disarray but a unique property that was a 3/1.5 bath with a semi-attached studio apartment.

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

The market was hot and this was a great transitional neighborhood.

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

Across the street from a family member. Got the owners number and called. It took over a year and half. Then accidentally I met her lawyer and he finally encouraged her to sell. She did within days and I negotiated with the lawyer directly.

How did you finance this deal?

Financed with private money and HELOC.

How did you add value to the deal?

Paint, light bathroom remodels including toilets, vanities, fixtures and floors. Painted kitchen cabinets, granite countertops, lvp floors.

The back studio was empty. I added cabinets and plumbing and created a kitchenette. Remodeled the bathroom with new floors, drywall vanities and fixtures.

What was the outcome?

This was a headache. Mold, rotted studs, old roof, bad hvac, dirty and disgusting. Every turn there was a new problem. Thankfully the price still worked and was able to make decent money on this. All in at about 150k, sold for 215k.

Lessons learned? Challenges?

This was the last property where I do work myself and also the last one where I cut corners. I'd say this was the most frustrating because it seemed like i was just piecing stuff together. After this I've created a bit more of a system in flips. I have a plan and crews that are helping get the work done at reasonable prices and quick timelines.