First Flip in North Nashville

[Josh Folsom]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $125,000
Cash invested: $75,000
Sale price: $270,000

I bought this small 704 sq ft house in a developing neighborhood. I added 512 sq ft to the back of the house making it a 3 bedroom 2 bath. We completely renovated the existing house only leaving the drywall on the walls and the hardwood floors. We added a driveway and fenced in the backyard and ended up selling it after about 35 days on the market for asking price.

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

Its the business that I'm in, always for other people, so I thought it was time to take my skills and combine it with the hot market in Nashville Tennessee.

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

I had a real estate agent I was working with, however I found most of the properties we looked at myself on Redfin and Realtor Apps. I found the house and the day we looked at the house it went under contract. So I told the agent I wanted to put in a backup offer which almost never works, but this time the first buyer fell through and I was able to make the deal. I ended up paying asking price.

How did you finance this deal?

I have a HELOC on my personal residence I was able to use to finance the sale and renovations with.

How did you add value to the deal?

Adding square footage was the biggest way. But adding some curb appeal and putting emphasis on the kitchen and bathrooms.

What was the outcome?

We didn't get finished as quickly as we wanted but still had enough summer left to not have to wait too long with it on the market. We made some money on it but probably the lessons learned were more valuable.

Lessons learned? Challenges?

We learned a little more about where to spend the money on high end things and where not to. We also just kind of figured out what kind of renovated house we wanted to put our names on. We spent more doing things right (or overdoing them) but in the end the home inspection list was very short and the closing process was easy.