First Flip - 746 Becker Dr. Vineland

[Brad Miller]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $115,000
Cash invested: $73,000
Sale price: $297,000

The home is a 3 bed, 1 bath, 1,184 SF rancher with a full basement and 2-car detached garage. An addition was added to the back of the home within the last 15 years to add an additional living room. Updates made were: new windows, new electrical system new doors throughout, new flooring & paint, new granite countertop and tile backsplash, new appliance package, new garage door, and new exterior paint. Video walkthrough: https://www.youtube.com/watch?v=XX5PtDvl5NM&ab_channel=BradMiller

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

Fortunately, this deal fell into my and my partner's lap. We had an opportunity to buy our relative's home who recently passed away and have always wanted to get into the investment space, so after determining that the numbers made sense, we jumped on it.

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

A relative passed away and our family gave us the first opportunity to buy it. Being a realtor in the area of the subject property, I was familiar with property values and costs for getting the work done. After discussing the numbers with our family, they agreed to a reasonable price and it was a go!

How did you finance this deal?

I have a friend in the hard money space and he was able to help us with the financing.

How did you add value to the deal?

We pretty much made the home brand new. Luckily, the roof and HVAC were both in good condition, but other than that, we pretty much replaced/redid everything else.

What was the outcome?

We were able to attract multiple offers within 10 days of listing the property and ended up selling it for $12,000 over-asking.

Lessons learned? Challenges?

We learned that we have to be more systematic when it comes to lining up our contractors. Not being too familiar with what needed to be done first, we went through a lot of trial and error which caused delays at some points of the process. Luckily, there weren't any major surprises.

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

I'm a realtor in the area of the subject property so I was able to list the home myself. Ideally, I wanted to find my own buyer to save on commission, but I was more than happy to work with a buyer's agent who had a client bid over asking - essentially paying for the buyer's agent's commission in full. This was extremely beneficial for me as I now have a firm grasp of the flipping process, the costs of different types of work, and attracting multiple buyers to the listing.