My first fix and flip

[Maryann Nichols]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $115
Cash invested: $17,000

This is my first fix and flip. We made a lot of mistakes like working in the wrong order and doing work just to keep my employees busy. There were a lot of costs that we didn't expect like the plumbing had to be completely redone. A contractor left a back door open one day and someone walked into the house and stole $2000 worth of tools.

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

I was already doing painting and renovations. I have my own employees. I figured why not just use a banks money instead of using a customers money and not have to deal with picky customers.

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

I used a realtor that specialized in rehab properties.

How did you finance this deal?

Hard Money Loan and HELOC on my own house.

What was the outcome?

The house is under contract for $5k over asking price.

Lessons learned? Challenges?

Never leave tools on a job. Upgrading HVAC costs about $10k with electrical upgrades. Plumbing is usually so old it has to be completely upgrades.