Fix & Flip in Rio Rancho NM 2019

[John Myers]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $165,300
Cash invested: $22,000
Sale price: $235,000

Purchased this bank owned home with the intent to fix & flip. This was a lipstick flip as I call them. Needed minor cosmetic repairs, flooring, paint, appliances, water heater, etc...

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

It was a simple fix and flip and easy money.

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

This was a bank owned home and found it in the MLS, I am a real estate agent.

How did you finance this deal?

Cash

How did you add value to the deal?

Minor cosmetic fixes, paint, flooring, appliances, water heater, minor repairs.

What was the outcome?

Nice profit of about $35,000.

Lessons learned? Challenges?

Originally I had a partner when we made the offer. After the offer was accepted, my partner wanted to back out of the deal. He did not think we would make a profit. I went ahead with the deal on my own. I am and agent and was confident in all the numbers including ARV, repair costs, etc... He did not believe the home would sell for my ARV.

Lessons learned. Flipping houses is all about the numbers. Do your due dilligence and make sure your numbers are right.

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

I am a real estate agent in Albuquerque NM metro area and am used to evaluating potential flips. Confidence comes with experience!!