Fix & Flip

[Ryan McKinney]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $155,000
Cash invested: $215,000
Sale price: $417,500

This single family home project was a personal flip project. It took longer than we would have liked and it cost more than we would have liked, but we made a significant profit. The only thing we probably didn't do was tear out walls. We actually added a few walls to create a primary suite. Project included new windows, new doors, new siding, new floors, new bathrooms (vanities, toilets, shower, lighting), new kitchen (appliances, sink, granite counters, cabinets, lighting), new paint, new pool liner, new landscaping. We installed an interior French drain system in the basement, because we knew that the neighborhood is prone to water intrusion. We hired a General Contractor for an exterior back wall stabilization. The GC hired an electrician for a complete house re-wire and a plumber for a complete house re-plumb.

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

#1 Money. We knew we could make money.
#2 Location. We knew it would sell for a great profit because of the location.

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

Through our sphere of influence, the seller called us because they knew we could help them with a cash purchase and to close quickly.

How did you finance this deal?

Cash

How did you add value to the deal?

Project Manager throughout the process, working with the GC. Sold the property knowing that the comps were going to be over $400,000.

What was the outcome?

Good profit!

Lessons learned? Challenges?

It was a massive flip property. It took a long time. Next time on a MAJOR renovation project, I'd have the City of Johnson City Building Inspector join me for a pre-purchase tour to tell me what permits and what jobs they'll require of me.

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

Yes. My wife and I were the Realtors. We're adept at knowing which properties have room for added value. We are especially adept at making sure the LOCATION is adequate, if not ideal, for a property to sell.