Poly Fix and Flip

[Karma Abdula]

Investment Info:

Single-family residence hard money loan investment.

Purchase price: $69,000
Cash invested: $35,000
Sale price: $120,000

Summer 2018, I flipped this 1925 Polytech bungalow. Purchased for $69,000, it needed a full rehab, including a new roof, plumbing, and modern updates inside and out. Despite surprises and challenges, I transformed it into a move-in-ready home and sold it for $145,000. This deal taught me to always budget for contingencies and reinforced the value of a great team!

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

Found this off-market deal through a local wholesaler specializing in distressed properties. They highlighted it as a prime opportunity in the Polytech area, though "hefty rehab" was putting it mildly. After a bit of back-and-forth on the repair costs, I negotiated it down to $69,000, convincing them the extent of repairs was higher than they initially estimated.

How did you finance this deal?

I used a hard money loan to finance the purchase and rehab costs, with a small amount of my own cash for contingencies. Hard money was the best option for this property, given the condition and timeline to close.

How did you add value to the deal?

This property was in rough shape, so I tackled the essentials: new roof, plumbing fixes, and updating the interior to make it livable again. The exterior got a fresh coat of paint, and I added modern fixtures inside to attract buyers. This turned a near-teardown into a cozy, move-in-ready home.

What was the outcome?

After a couple of months of hard work and more than a few unexpected surprises during rehab, I sold the property for $145,000. The profit made all the challenges worth it and reaffirmed my passion for flipping houses.

Lessons learned? Challenges?

Always overestimate your rehab costs. Lesson two: The Polytech area has a lot of potential but requires careful planning for the scope of work. The biggest challenge was addressing unforeseen structural issues, which ate into the budget.

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

The hard money lender I worked with was instrumental in closing quickly, and I partnered with a fantastic general contractor who helped me stay on track despite the challenges.