Pine Street Flip

[Darion White]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $84,000
Cash invested: $45,000
Sale price: $170,000

This was my first flip with a partner. I contributed by putting in all the sweat equity in the property. This involved new windows, tile, refinishing cabinets, adding a bathroom, updating a front porch, and several other things to bring this property back to life.

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

Up to this point, I had worked for another guy and together worked on nearly 50 investment deals over the course of 6 years. At the time I did not know enough about rentals and my financial partner was more interested in a flip instead of a buy and hold.

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

The person who lived in the house was a family friend and we had heard they were getting ready to sell the property. However, at the time I still feel like we overpaid for the property. But I do not regret the decision to make the purchase.

How did you finance this deal?

Cash

How did you add value to the deal?

Several new updates. Paint, Windows, Trim, Doors, floor coverings, cabinets and countertops. Add a dishwasher and stainless steel appliances. We also added another large bedroom and bathroom in the basement.

What was the outcome?

We sold the house very quickly for asking price.

Lessons learned? Challenges?

Several lessons learned. One being who I chose to be relator. It was a relative who just got their license they also were the buyer's agent. So, this created a few issues along the way and ultimately a loss of potential profit. Another lesson I learned was to have a more concrete scope of work to help create a more accurate budget and to add a buffer in the plan for things that come up that are unexpected.