Learning Lessons along the way-fix and flip

[Jodi Gauthier]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $182,000
Cash invested: $74,100
Sale price: $335,500

We acquired this property off MLS. I loved how it turned out and we made a nice profit but it took longer than expected due to several hiccups along the road (contractor mistakes, not being on top of the project management as much as we should have been, unethical inspectors, etc.). We definitely learned some valuable lessons along the way and plan to implement some changes on our next flip.
Purchase Price 182k
Rehab 65k
Holding Costs $3,800
Closing Cost 13k
Sales Price 335K
Profit $71,200
(Being a Realtor I earned roughly $5,500 on the commission when purchasing and saved 3% on selling commission which is why cc is so low)

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

This was in the neighborhood we work and live. I love to do flips in our neighborhood and saw tons of potential in this neglected property.

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

Found the property listed on mls at a ridiculously low price and jumped on it. Negotiated 7k down during option period.

How did you finance this deal?

Local Bank financed. Used our own funds for down payment.

How did you add value to the deal?

Separated the raised living area, did some foundation needed foundation work and full cosmetic remodel.

What was the outcome?

We put the home on the market the first of July and had multiple offers within the first week at 356k list price. The deal fell apart because of inspections. The inspector damaged the home and we had to remove from market and battle with them to make repairs. Finally they obliged, we relisted and sold after having to reduce once.

Lessons learned? Challenges?

I learned to vet inspectors, educate myself in mold remediation protocols and TDI reports, pay closer attention to budget, day rates are not the way to go, don't hire friends, etc. The list goes on with lessons learned on every property we do. Thankfully the list hasn't been duplicated. I may be learning the hard way, but I'm learning. Every step of the way.

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

ThisIsLivin Properties for the acquisition and disposition of this property.