Peoria Fix & Flip

[AJ Smith]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $135,000
Cash invested: $30,000
Sale price: $215,000

1 acre home. Originally purchased as an Airbnb Househack, but decided to flip the property after I was relocated by my W2.

New Paint, floors, countertops, backsplashes, appliances and light fixtures.

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

Originally I was looking for a duplex to househack, but there were none on the market that made sense financially.

I stumbled across this single family home with a mother-in-law suite that was on market for 100+ days while searching zillow one day and I was immediately interested. Nasty house in a great school district/neighborhood.

Listed for 179,900 and I offered 100k. They countered at 135k and I accepted!

How did you finance this deal?

100% financed purchase price from a local credit union, and 89% of rehab funds were also financed in the same transaction.

How did you add value to the deal?

I added value by updating both Kitchens appliances/flooring/Paint, installing new light fixtures and flooring, and painting the exterior siding a nice grey instead of the nasty blue that was there

What was the outcome?

34k take home profit

Lessons learned? Challenges?

You get what you negotiate.

Buy underpriced assets in great neighborhoods, upgrade as much as necessary to sell, and redeploy capital into future deals