Project Summary for 1212 Ridgmont

[Jeremy Ellis]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $98,000
Cash invested: $31,000
Sale price: $166,000

We acquired 1212 Ridgmont from a wholesaler, and it turned out to be a straightforward rehab project.
Our team completed the rehab in just 14 days. However, we faced a few unexpected challenges:

A hailstorm damaged the roof while the property was under contract.
The main water line to the property failed.

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

We were particularly interested in this deal because it involved a light rehab, which is less complex and time-consuming compared to more extensive renovations. Additionally, the property was extremely affordable for our area, making it a low-risk investment with a high potential for a good return. The combination of these factors made it an attractive opportunity for us.

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

Wholeseller and direct negotiations

How did you finance this deal?

Hard money

How did you add value to the deal?

Exterior:

Applied fresh paint.
Replaced siding due to wood rot.
Interior:

Installed new ceramic tile flooring.
Added new kitchen cabinets and granite countertops.
Updated the bathroom with a new vanity featuring granite counters.
Refinished the existing tub and tile surround.

What was the outcome?

We listed the property expecting to sell at $179k and went under contract in 17 days. Unfortunately, the appraiser valued the property at $159k. After negotiations, we managed to raise the appraisal to $166k.

Lessons learned? Challenges?

Be extremely conservative on ARV in this market

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

Housemaxx lending for hardmoney