My First Ever Fix and Flip Project

[Andrew Farrar]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $52,500
Cash invested: $70,000
Sale price: $214,000

This was a Fannie Mae property, so I had to live there for 2 years as part of the project. I used all the savings I had at the time, fixed it up while living there, and got a private loan for the renovation cost of $70,000. There was extensive work, but the home was in a good area surrounded by multi-million dollar horse farms. The profit from the sale started me on my investing journey!

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

Real estate investing always interested me. This property was the most affordable one I could find for what I had at the time.

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

Worked with an agent to find it. I bid $2,500 over asking and ended up being the highest bidder by $500.

How did you finance this deal?

My savings for purchase and private loan (12%) for renovation

How did you add value to the deal?

Property had tons of trash and a few minor structural issues. Shored up the roof, cleaned all trash and debris, and renovated the inside. Full stucco reno on outside, painted exterior. Brought addition back to life by installing new roof and installing several new windows for natural light. New cabinets, appliances, etc.

What was the outcome?

About $75,000 profit after paying back lender, realtor fees, etc.

Lessons learned? Challenges?

Learned so much! You always do in the first project. Learned some basic electrical knowledge for wiring outlets and switches, learned how to apply stucco, paint metal roof, install U/V light for clean water, etc.