Single Family Flip (1st Flip)

[MIlton Monzon]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $117,500
Cash invested: $95,000
Sale price: $330,000

Off Market Single Family. Due to how the market was going we were very conservative with the numbers. I prefer to hold rehabs but wanted to test the flipping game and teamed up with two contractors. It was a hoarder house and had to negotiate with wholesaler to bring the value down. We expected 275k conservatively and 300k max. Amazed when 330k was offered second day on market in April 2023.

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

Wanted more capital and test out a partnership with my contractors. Goal was to have enough capital made to pay off any debt I had to finish the year.

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

Off Market Wholesaler who I had done a deal with. He wanted 155k initially and we got him down to 317,500. Numbers were to tight for us with a 275k ARV and 90k rehab at 155k. Plus there was Solar panel drama involved, property was near commercial buildings, oil heat. Alot of minor headaches that could have piled up at a tighter price.

How did you finance this deal?

RCN Capital my preferred hard money lender and between myself and my two contractors we split the downpayment in 3.

How did you add value to the deal?

Tiled bathrooms, Major kitchen reno, LVP flooring everywhere else, and curb appeal.

What was the outcome?

Finished project in 6 months and made over 117k in profit split 60/40. Now had to get creative to write off 30% in taxes.

Lessons learned? Challenges?

Winter holidays slow the process down. Commuting for my contractors was a headache and unexpected expenses. Original budget was 68k and that was approved by the lender. The remaining 37k was out of pocket. Really happy i got all that back.

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

Brenda Engel from New London CT and RCN capital for hard money lender.