Single Family Fix and Flip

[Brooks Gagnon]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $117,000
Cash invested: $50,000
Sale price: $245,000

Single Family Fix and Flip, 3 bed .51 bath. Decent entry level neighborhood, structurally in good condition.

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

This was our second fix and flip, and we were excited to get going on it after doing really well on the first one.

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

This was a foreclosed home, listed on the MLS by the bank. There were multiple bids and we paid well over asking price, but we knew the repair costs and the ARV so we were ready to go.

How did you finance this deal?

We utilized the same private funding that we had used on a previous deal, also raising some funds from a family member that wanted to participate a bit.

How did you add value to the deal?

The upstairs, all we had to do was paint, refinish the hardwoods, and reno the half bath. Downstairs was a bit more extensive. We removed a large wall to open up the kitchen to the dining area, and extended the size of the bathroom, and added a pantry in the kitchen. All new cabinets, marble countertops, tile floor and backsplash. Came out great in the end.

What was the outcome?

We were able to turn a great profit on this one as well, although the market was a bit soft at the time and it did require a price cut to get it sold, but the $80k profit was still great.

Lessons learned? Challenges?

I let the reno run a bit longer than I should have. We could've been done much quicker if I was little more hands on, and it could have afforded us to sell a few months earlier when the market was a bit stronger.