Fix & Flip or BRRR? Thats the question!

[Jason Tougas]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $145,000
Cash invested: $45,000

Purchased 4 bed, 2 bath distressed property with intention to fix and flip. Plans to complete and list by 3/31/23.
Home required more restoration than initially anticipated and has exceeded rehab budget of $30,000. Working to determine best approach on whether to hold or sell. Purchased with hard money loan. If refinancing, Id likely need to come out of pocket to cover the extra expenses.

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

I was wanting to do a fix/flip to generate revenue to invest in another deal. Looking for working capital and not cash flow. Also running into DTI issues with refinancing due to number of properties.

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

wholesaler.

How did you finance this deal?

hard money lender

How did you add value to the deal?

complete renovation including foundation repairs.

What was the outcome?

TBD

Lessons learned? Challenges?

Dont hire bad contractors.
Supervise contractors throughout the project to ensure work quality
Add additional contingencies or budget to account for mistakes or unknowns
improve scope of work estimates and improve contractor estimates