A look back at my first flip

[Andrew Campbell]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $105,000
Cash invested: $24,000
Sale price: $141,000

First flip, great learning experience.

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

It was easiest to get into. Young military guy buying his first home with VA benefits and a mind to break into real estate.

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

My real estate agent. I was looking for property in the 60-80k range. She asked if I'd be willing to go up a bit and introduced me to this. I should have negotiated the deal better; I could have got it much cheaper, and I knew it. But, I had a soft spot for the older lady that was selling it.

How did you finance this deal?

0% down VA benefit mortgage

How did you add value to the deal?

Complete facelift, to include some pluming and sub-floor work. All new windows, new front door, landscaping in the back, new countertops, appliances, all flooring, fixtures, and paint.

What was the outcome?

Roughly 10k profit and 6 months on the market.

Lessons learned? Challenges?

Always look at the location from the perspective of your end buyer! This was a SFH, and I didn't even look at the school zone once. It ended up being zoned horribly, and the better school zone had tons of new construction and availability. It sat on the market for a very long time and I had to do several price reductions to finally get it sold.
Also, don't be afraid to outsource your weaknesses. It's much cheaper to hire someone first, rather than attempt to save money by DIY and failing.

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

I would recommend Ed Perales Construction in Clovis, NM. They are very investor friendly and did an amazing job for me.