First purchased property with my Dad

[Corbin Hicks]

Investment Info:

Mobile home fix & flip investment.

Purchase price: $125,000
Cash invested: $45,000
Sale price: $212,000

Don't let the numbers fool you! This mobile home flip was on an acre & was not in bad shape so it was a great entry price. However, my dad and I worked with a general contractor that a friend of ours recommended & it ended up being a hickey on our profits. To summarize - horrible communication, bad pricing, and hiring workers they didn't even know personally. The hidden costs came from $ offered for closing & $ to buyers after the inspection came back saying more work was needed.

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

The entry price and condition made sense.

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

My wholesaler friend. It was priced fair so there was not any negotiations. It was a first come first serve so we drove out to quickly look at it and then signed DocuSign papers.

How did you finance this deal?

Hard money.

How did you add value to the deal?

New paint interior & exterior, skirting, decks, bathroom alterations, flooring & carpet, fixtures, plumbing, HVAC, and some windows.

What was the outcome?

Netted about $10,000 on the flip and learned about ways to "Cross our T's and dot our i's" more so.

Lessons learned? Challenges?

A main/big one ~ Consider getting your own contracts early on for contractors and include timelines and specifics with work being done.
Overall though this was my first purchased property and doing it with my dad made it a good bonding experience. We got to put a decent bit of sweat equity into it as well. It was a fun time.