Foxhaven 3/1.5 SFR Fix & Flip, Deal #1 of many more to follow.

[JM Payne]

Investment Info:

Single-family residence fix & flip investment in Gloucester.

Purchase price: $98,500

VA foreclosure fix and flip, first time deal. SFR, 3 br 1.5 bath, 1 acre, 1100 sq ft. Mostly cosmetic/updating, although inspections turned up low water pressure in the well and a seized compressor in the HVAC unit. Have been able to fix both issues ourselves, saving considerable amount of money, and are leveraging sweat equity. Intended on-the-market date is 1 Mar 2019.

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

Took out a HELOC on another property and had been shopping the MLS for 7 months. Put in other offers, but were losing out to above-ask bids. We are actively seeking real estate investments to replace our primary incomes.

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

The house hit the MLS the day that hurricane Gordon was scheduled to hit Virginia. My mother is a property manager with lockbox access, so we toured it that same day while everyone else was stocking up on groceries, and submitted a full price offer the next. As far as I know, we were able to get the house under contract before anyone else was able to even tour the property. Inspections turned up well and HVAC issues...VA knocked off $1k and we closed.

How did you finance this deal?

HELOC on another property that was previously free and clear which allowed us a cash closing. Rehab done on a 0% interest business credit card. Thanks Discover!

How did you add value to the deal?

We are rehabbing the house. The well and HVAC systems are back online. Other projects include; new paint and fixtures throughout, new LVT flooring throughout, water filtration upgrades, new appliances, landscaping, driveway install, etc

What was the outcome?

Still in process. We expect to be back on the market 1 Mar 2019.

Lessons learned? Challenges?

Many lessons! I learned how to take apart, repair, and reinstall a well system, as well as designing proper pressure systems and filtration. Lessons were learned re: partners, and I got to spend a lot of time working with my family, which was fun, albeit challenging at times.

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

Vince Campana, of Campana Waltz Real Estate, brokered my side of the deal.
Virginia Payne, of Liz Moore Property Management, manages our portfolio and got us in to tour.
Attorney Andy Franck, of Geddy, Harris, Franck & Hickman, handled closing.
Fletch Dilday, of Middle Peninsula Insurance, handles our insurance portfolio.