I would've done this differently!

[Matt Pursley]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $32,000
Cash invested: $92,000
Sale price: $169,000

This thing was rough. Permits, city inspectors, practically reframed the whole house. It was only a small 2 bed but it was just one awful problem after another. Margins on 2 bedroom homes are thin. I should've just wholesaled this for a small profit. Wasn't worth the headache. After fees, commissions, holding costs, only made about 10k. Probably could've gotten that wholesaling it. Learned more through this than any other flip i've done.

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

My strategy is to fix-n-flip then use capital to acquire long term rentals.

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

Direct mail marketing. They told me they wanted 45k. I said the best I can do is 32k and they said ok.

How did you finance this deal?

My own cash then borrowed rehab from private money.

How did you add value to the deal?

Complete GUT GUT GUT rehab

What was the outcome?

Made a little bit, learned a lot.

Lessons learned? Challenges?

Avoid 2/1s. Margins are too thin. Just wholesale it, make a few grand and get out of there.