Single Family fix and flip in SE Portland on the market now.

[Micah Shelton]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $262,000
Cash invested: $90,000

Single family 4 bed 2 bath home. We fully renovated the kitchen and baths, new floors, windows, paint in/out, plumbing and electrical updates. Garage needed all new roof supports as they had been modified by prior owner.

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

I have flipped 10 homes in the Portland area to date. Prior to this deal Portland was in a low inventory situation which made finding distressed homes, cleaning them up, and then re-selling pretty smooth.

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

This house was brought to me by a wholesaler in our area. Price was firm.

How did you finance this deal?

I used some private investor funds to pay the down payment on the hard money loan (2pt and 12%APR terms) I then used $45,000 of a personal HELOC loan and an additional $50,000 form another private money investor to fund the renovations.

How did you add value to the deal?

As a realtor Im able to find and list our renovated homes. In addition I assist in some of the renovation work through the process.

What was the outcome?

This one has proved tricky. All in with realtor fees, investor payback fees, and loan fees we are all in at what the home is currently listed for. The project took 2 months longer than planned due to some structural repair needs on the garage roof, additional plumbing work. Normally we can get a property re-listed in 3 months from start date, this one was 5. That landed us right before Christmas (not ideal). Our initial ARV for the home was going to be $379,000.

Lessons learned? Challenges?

Make sure to plan for the unexpected, dont be afraid to drop the price. Sometimes a loss is just inevitable.

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

I have had great success with Dorrie Gengler from Old Republic Title in Clackamas OR...She has been Great.
Also Todd Williams from Umpquah Bank is a great lender resource for a local bank.