$63k profit on 3 week rehab!

[Colter Doty]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $250,000
Cash invested: $14,000
Sale price: $350,000

This was a super fast rehab. Only thing this property needed was interior paint, exterior trim, HVAC unit, and carpet in 4 bedrooms.

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

The only thing the property needed at the time of purchase was interior paint, new HVAC unit, and carbet in the bed rooms. A hail storm while I was holding it caused a new roof to be needed but insurance paid most of it.

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

It was a listing of mine at first. The seller did not want to list it and wanted to sell it fast to an investor. I tried whole selling it first but couldn't get any bites. I knew the area and I knew it was a good deal so I decided to buy it myself. The upfront 6% commission also made it more attractive. I knew that I could get all my hard money cost covered by the commission.

How did you finance this deal?

Hard money

What was the outcome?

Purchase Price: $250,000
* I made 6% upfront since it was a listing that I had bought directly from my seller.
Rehab Cost: $16,000 for new HVAC unit, interior paint, exterior trim, and new carpet in 4 bedroom
Total Hard money cost: $16,000 (application fee, holding cost, and back end points)
Buyers Agent Commission: $10,500
New Roof: $6,000 (total was $18,000 but insurance paid the difference)
Listed the property myself as an agent so no listing fee paid

Purchase Price: $250,000

Lessons learned? Challenges?

Don't be afraid to take down the deal if you know the numbers are good. Other people may not be able to see it but sometimes you have to go with your gut.