Single Family split foyer, farm house style

[James Adair]

Investment Info:

Single-family residence fix & flip investment in Duluth.

Purchase price: $135,000
Cash invested: $30,000

We found this property through a local realtor that knew we were investors. The homeowner had been renting the house out and didn't want to deal with cleaning it up and listing it. We negotiated with her and bought the property two weeks later. It was in ok condition when we got it but hadn't been updated in about 30 years.

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

It's in a decent area with good schools. It's also close to the interstate and lots of local shops.

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

Local real estate agent called us when his client mentioned they didn't want to fix the house and wanted to sell it quickly. Negotiations were pretty easy since we told them we would buy the house as-is. We had to make sure it made sense for all parties involved.

How did you finance this deal?

Private money for the purchase and we threw in the money for most of the rehab.

How did you add value to the deal?

We updated almost everything in the house. New roof and gutters, floors, kitchen, baths, paint, trim. Pretty much gave the house a complete update.

What was the outcome?

Turned out awesome. It's currently under contract and closing is set for just after the new year.

Lessons learned? Challenges?

I own my own contracting company and tried to do most of the work myself... not the best idea. I just ran myself ragged trying to get it all done. Next time I'm calling in my plumber, electrician, and other subs to do all of that work.

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

Yes, we worked with Robert Smith at the Smith group here in Atlanta. Those guys are great! It also helps that he's my business partner but.... he's awesome. I couldn't have done it with out him.