East Point GA - not for the faint hearted

[Dennis Bruce]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $85,000
Cash invested: $100,000
Sale price: $260,000

Complete rehab - 100 yr old home, down to the 4 walls - everything new in a lower end but gentrifying neighborhood

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

We saw interesting upside in a lower end neighborhood and once we started several other investors came into the neighborhood

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

Through a wholesaler - got an additional 5% discount over already lowered price

How did you finance this deal?

hard money and own funds

How did you add value to the deal?

complete rehab

What was the outcome?

mixed - pandemic caused slowdowns which impacted project timeline and costs. In retrospect should have refinanced and held

Lessons learned? Challenges?

NEVER use a general contractor (subsequent f/f and f/h we did ourselves turned out much better).
pandemic was a challenge to get materials above all - managing GCs who were unresponsive and disappeared

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

No