Flip during covid

[Nicholas Olson]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $232,000
Cash invested: $65,000
Sale price: $495,000

This was a house that I bought during covid for a project, and I completed all the work on this project myself. It was in a good community that had a strong sale market. This house was roughly 2500 sqft, but needed a little change in layout.

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

I saw the potential for a big profit margin based on the current market conditions, and what the house was currently listed for.

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

I had an alert sent from Zillow when this house hit the market. The house was originally listed for $262,000 and I was able to get the price down to $232,000 based on the condition of the home.

How did you finance this deal?

I financed this with a conventional mortgage. I only put 5% down, because I wasn't planning on keeping this house for very long.

How did you add value to the deal?

I completely remodeled the inside and outside of the home. I saved money on the labor cost by doing the work myself. Luckily I have that capability.

What was the outcome?

At the end, I sold this house and was able to make around $150,000 profit on this deal.

Lessons learned? Challenges?

If I was to do another house flip, I would definitely hire more things done to avoid trying to do the work around my regular job. I am getting too old to work like this and it was just too much.

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

I had a real estate agent to submit the deal for me and help get everything closed.