Flip in Sapulpa (Tulsa OK. Metro area)

[Todd Clifton]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $90,000
Cash invested: $31,000
Sale price: $168,000

Found a 1917 single family house that needed some updates.

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

In my past deals were buy and hold deals. But with interest rates being higher, I decided to pivot and try my first fix and flip.

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

Found it on the MLS. Originally it was listed at $110K. We lost the initial bid of $110K cash to others who had made higher offers. Those other offers were FHA loans which did not qualify because all the upgrades that needed to be done. So, we did eventually win the bid. Then we ran our inspections and found multiple things that we asked the seller if they would come off the price.

How did you finance this deal?

I worked with a private investor who provided all the capital for purchase and renovation.

How did you add value to the deal?

The house was listed as a 3 bed, 2 bathroom house. Actually it only had 1 bedroom because two of the rooms did not have closets. So, one of the biggest things we did was enclose one room and add two new closets. This turned it into a true 3BD/2B for appraisal purposes. And of course we did normal things like new flooring, lights, electrical, kitchen and bathroom upgrades.

What was the outcome?

My investor pocketed great money and I made over $31,000 on the deal.

Lessons learned? Challenges?

I did most of the work myself beyond my granite, carpet and electrical guy. In hindsight I will probably have other contractors do more of the other work as well.

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

As an agent, I was able to benefit from both sides of the transaction as well.