Fix and Flip to a Buy and Hold

[Douglas Vogel]

Investment Info:

Single-family residence fix & flip investment in Chicago.

Purchase price: $145,000
Cash invested: $45,000

Bought the property as a fix and flip. Unfortunately after the great rehab on budget, was unable to sell on the market for over a year. It is now producing a $900/month cashflow as a medium term insurance rental.

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

Wanted to flip for profit

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

Networking and finding investor/broker

How did you finance this deal?

Rehab loan along with private investor

How did you add value to the deal?

Complete rehab of the property

What was the outcome?

Ended up keeping the property due to inability to sell (still not sure why).

Lessons learned? Challenges?

Estimating market conditions 2-3 months out after rehab is complete.

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

Yes one broker/investor which knew the market and had contractor relationships.