My First Flip

[Spencer Carpenter]

Investment Info:

Townhouse fix & flip investment.

Purchase price: $155,000
Cash invested: $10,000
Sale price: $195,000

2bd/1.5ba Townhouse in Lancaster, PA

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

These would be my first flips. I liked that it was going to be mainly a cosmetic rehab - carpet, LVP flooring, painting, some electric, light plumbing, and refinished countertops. Additionally, with the market being unpredictable with rising interest rates, I like that I had the opportunity to possibly provide homes that were less than 15 years old to young couples that were priced out of the market from 2020-2022.

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

This property came to me packaged with 27 Chesapeake through a wholesaler just before Christmas of 2022 and we closed on it before the end of the year. I asked for $10k less and settled on $5k less.

How did you finance this deal?

$10k of my own money, $25k from my mom, $45k from a private lender, and the rest from hard money.

How did you add value to the deal?

Carpet, LVP flooring, painting, new lighting fixtures and can less recessed lights, new light switches/outlets, GFIs, light plumbing, refinished countertops, and light landscaping.

What was the outcome?

It sold before we took it to market to someone that came to a meetup I host. When all was said and done, I lost $500 on paper. Technically I paid $5k more on this property than I paid on the property I bought it with. If you dollar cost average them though, I made a little over $2k.

Lessons learned? Challenges?

Holding costs and the time you allow tenants to stay can make a big difference if you have tight margins. I allowed the tenants to stay for 45 days, didn't charge them any rent, and gave them $1k cash when they left. I wouldn't do this differently, however I now know how to plan those costs better.

I also learned to leave carpet and vinyl flooring to the professionals. They efficient and typically worth the price you pay to have the job done right and quickly.

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

Realtor - Brittany Fellin - https://kghomegroup.com/about-our-team/
Painter - Mark Campbell - https://www.instagram.com/mark_legions
Wholesaler - Kyle McCorkel - https://www.biggerpockets.com/users/ksm5000