3/2 Condo Flip in Phoenix

[Andrew Rodgers]

Investment Info:

Townhouse fix & flip investment.

Purchase price: $123,000
Cash invested: $215,000
Sale price: $215,000

It's a pretty standard layout 3 bedroom 2.5 bathroom townhome located in Phoenix. (19th Ave and Camelback)

The highlights on this flip of course are the new kitchen, herringbone floors and tile shower.

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

I took the plunge on this deal because of just how good of a deal we were able to purchase it at. The market at the time was heating up and we saw that entry level homes were in demand.

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

The deal came through an app my and my cofounders were working on called OfferFast.

How did you finance this deal?

Interestingly enough, the seller for the property also lent me the capital to do the flip as well.

How did you add value to the deal?

The main value additions came from the new kitchen and the opened up the hallway between the kitchen and the living room. By raising the roof we were able to make the space feel a lot bigger. Beyond that, we added a new kitchen and bathroom with styling that matched that matched what most flippers were doing at that time.

What was the outcome?

The outcome was a beautiful home with multiple offers on it. We ended up netting around $27,000 on the property after all realtor fees, holding and remodel costs were accounted for.

Lessons learned? Challenges?

The big lesson is to take the chance. This property was outside of where I was comfortable flipping because I grew up on the other side of the city. It was a different demographic and type of home that I was used to but per usual, it all worked out in the end.

As far as challenges, I ended up learning how to tile a bathroom myself. The contractor (my brother-in-law) burned his hands halfway through the job and I ended up having to take over.

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

I worked with Wayne Ung, who I would absolutely recommend working with. He's a great agent and investor who is always happy to share his knowledge with others.