This project was a very interesting one! I had done many projects in the Metro Area of San Antonio, but I had always kept within certain parameters. I had always tried to flip properties that were 1) One Story 2) ARV under 280K 3) Properties under 1500 sq ft. On this specific project, I went for a little more ambitious agenda as the property at hand showed an ARV of AT LEAST 325,000, the property was two story, Property had a converted garage, and boasted a square footage of about 2,400 sq ft.

I put in really high end materials on this one, brought in subs to check every single corner of the house and overall did a really good rehab (At least this was the feedback everyone left). The problem came at the time that I actually listed the property. This was roughly around August of 2023. That was when, as many recall, interest rates where on the rise. Now, up to this point I had dealt with above average interest rates on properties listed for 220 - 280K. This was never an issue. When i listed this property, it appears it was a big issue to a lot of people. The listing price, along with prop taxes and interest, were making this property's PITI payment to be well over 3 grand. A lot of the conversations I had with the realtors that showed it had the same feedback, that for the PITI payment on this property, their clients could probably buy and new build and still pay the same thing (The house was situated rather close to a couple of new build communities). After going back and forth, taking the property off and on the market, bobbing and weaving on the price, waiting a couple of months to see any real action come in, I landed a client that was interested in the house. It was an out of state investor that wanted the property to list as an Air BnB. I ended up giving him some seller concessions (Which I ended up raising the price to make up the difference), he bought with a conventional loan, and overall was a smooth transaction. Almost no repairs were requested.

This project taught me a couple of things. First, be in tune with the market and how clients can potentially react to the list price depending on the area. Second, if something is working out for you, stick to it. Of course, we're RE Investors and we take risks sometimes, but let these risks be calculated risks. Third, I fell i love with the house when i first saw it and thought the end buyer was gonna fall in love just I had done. This turned out to be a mistake since I might have paid more than what I really wanted to. 4th and final lesson, be in tune with the area that you're buying! There was a lot of feedback from the realtors and clients that the payment for the house and the quality of the area weren't very much in tune, so the end buyer wasn't very comfortable with it. That means that for the PITI payment, there are better areas that a little more safer in the city of San Antonio, so why buy in this exact area and risk it.

Overall, I did make a profit on this project. The whole project lasted about 9 months from rehab to the selling point. It was well worth it since I had monetary gain, but I also learnt a lot from this project!! ONTO THE NEXT!!

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

Been doing fix and flips for some time

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

This was a pocket listing from a Realtor

How did you finance this deal?

Hard money loan

How did you add value to the deal?

Rehabbed it

What was the outcome?

Sold it for 306,340 on the open market. Took me about 6-7 months to sell

Lessons learned? Challenges?

Tried my patience for sure. Challenges? Check out my post for them!