Our first flip turned out great!

[Jim Young]

Investment Info:

Single-family residence fix & flip investment in Atlanta.

Purchase price: $40,000
Cash invested: $90,000
Sale price: $186,000

The house had been severely vandalized. The wiring and most of the plumbing had been stolen along with all of the fixtures, appliances, HVAC, hot water heater, etc. Basically everything that could be removed, had been. In addition the drywall was destroyed throughout the house, and most of the windows were broken. But the plus side was that the house was built in 2007, was a good sized 4/3, the roof was great, the framing was all there, and it was on a slab with no foundation issues.

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

I happened to be with a wholesaler and contractor inspecting another property when the wholesaler got a text about this one. We drove over together and looked at at, I did the analysis on my laptop and made my offer on the spot.

How did you finance this deal?

All cash.

How did you add value to the deal?

This was really a perfect rehab, the bones of the house were in great condition, everything that was destroyed was basically cosmetic or easy to rebuild.

What was the outcome?

Because this was our first flip I had modest profit expectations, and would have been happy getting the experience and not losing money. As it turned out we were helped by an appreciating market and made a very good profit.

Lessons learned? Challenges?

Contractor communications!

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

The wholesaler was Sam Elliott who was with New Western at the time. He was really great to work with and stayed engaged throughout the project as he was genuinely interested in seeing it succeed. He's self employed as an agent and investor now.