First Flip: Lots to Learn!

[Scott Winter]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $70,000
Cash invested: $60,000
Sale price: $165,000

First flip! We made lots of mistakes, mis-judgements, and errors. Got caught with the interest rates starting to climb and couldn't sell easily. I was able to sell to one of friends in the Subto community with creative financing and walk away with $2k profit. We had some great lessons learned and are able to apply that to our next deals!

https://www.zillow.com/homedetails/2017-Goodnor-Rd-Cleveland-Heights-OH-44118/33661450_zpid/

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

Wanted to get into flipping.

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

Found it from a wholesaler working in the area

How did you finance this deal?

Hard Money Loan

How did you add value to the deal?

Completely renovated the interior and some of the plumbing and mechanicals.

What was the outcome?

I refinanced into a long term loan and sold subject to existing loan to a friend who lives in the area to use for Airbnb. $2k in pocket.

Lessons learned? Challenges?

The garage was in disrepair but we thought we could "fix" it rather than replace it. We spend a few thousand dollars on painting and roofing instead of $25k replacing it. Had we planned to replace the garage, we could have sold the property sooner and for more money to retail buyers on the open market.

Also, if you notice the spread between what we bought it for $70k and what we put into it $60k and the sale price $165k. How could we only make $2k... holding costs and lender fees.

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

Yes