Fix n' Flip triplex acquired 4/17/23

[Eric Prescott]

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $50,000
Cash invested: $7,361

Triplex in 44120. $39,999 list price, multiple bids. Secured at $50k with $5k seller concession at closing. Financed with private funds. Full remodel at about $100k. Interested investors feel free to reach out regarding purchase. Two 3/1 units should rent for $1050-1100 and one studio (3rd floor) should rent for about $850, for total rents of $3k+/mo. Approximate completion date: July 18th.

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

Started out looking for a way to put a private lender's funds to work.

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

Found on MLS and negotiated through agents.

How did you finance this deal?

Private money.

How did you add value to the deal?

My main contribution was doing whatever was required to get the deal over the finish line, past two missed closing dates, holding all parties together through creative negotiations until final closing on 4/17/23.

What was the outcome?

Starting renovations this week with trash-out and roofing.

Lessons learned? Challenges?

Already knew upside down fix n' flip with a $100k budget was going to be tough for a relatively inexperienced investor like me, and it showed in how the private money group backed off their LTC the night before original closing, asking for $42.2k cash at closing vs. the original 90% LTC. However, despite the closing challenges, I learned how to keep a difficult deal together without backing off my original negotiation goals.

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

My patient and persistent agent in Cleveland is Ada Taylor at Howard Hanna. Elliott Taylor (unrelated) is the property manager and renovation services company owner who acted as my eyes on the ground throughout and helped the lender to see past some issues to get them to slightly reduce cash at closing.