I sourced this deal from the water department!

[Casey Murphy]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $68,000
Cash invested: $73,000
Sale price: $183,000

We bought this house from a private seller who got our info from our friends at the water department. They knew we'd flipped before in the same neighborhood. We did a full gut remodel on this house which drove the cost pretty high. That coupled with covid prices increases and me being unable to work as much due to a broken wrist made this our most expensive and least profitable flip yet. We ended up making about 25k after closing and realtor fees.

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

I like the construction aspect of flipping and large lump sums at the end.

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

This deal kinda found us. The homeowner told the folks at the water department that she really needed to sell this house. They called us after that.

How did you finance this deal?

A partnership with my parents where we both used our respective heloc's.

How did you add value to the deal?

Fully gutted the house, Opened up the wall between the kitchen and living room, New cabinets, new granite, new appliances, new windows. It looked like a new house inside when we were done.

What was the outcome?

About 25k in profit

Lessons learned? Challenges?

I learned a lesson about overpaying. I really wanted to buy this house because it was a nice lot and it was about 1 mile from where I live so I wouldn't have a long commute to work. Initially I wanted to get it for under 60k. We settled on 68k mostly just because I think she knew I wasn't gonna walk away from the deal.