Timing lesson learned

[Albert Thuilot]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $125,000
Cash invested: $45,000
Sale price: $219,500

Purchased an REO from the bank, who had listed it for $140k. 4 bed 2 bath, with 2 car garage. Between initial contract and acquisition the HVAC unit was stolen, and some additional damage done. Roof replaced, painted and fixed cabinets, all new flooring, windows, and bathrooms. Project was completed by May, and unfortunately missed the market by a month, otherwise would have sold for $255,000.

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

The opportunity of value, and my confidence that I could fix up the property for a profit.

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

MLS, reo from the bank.

How did you finance this deal?

Cash, half my own, half borrowed from a friend.

How did you add value to the deal?

Added value through updating the main areas of the house, while repairing the moldy walls and replacing the roof.

What was the outcome?

Nice profit, and a great home in a nice neighborhood. Its sad to see properties like this sitting for 10 years owned by the bank, when so many people are looking for a home.

Lessons learned? Challenges?

Prioritize projects! I had this flip and a STR rehab going simultaneously. I saw the market turning with the rates going up. I knew this house would be out of reach for many as the rates increased, and I should have halted the STR to get this one done. If I finished a month earlier, I would have made $25k more. The STR could have been delayed, as the income wasn't as much as the reduced profit on this flip.