Fix'n'Flip. South Chicago Classic Bungalow (1-Family House) Rehab

[Roman A Elizarov]

Investment Info:

Single-family residence fix & flip investment in Chicago.

Purchase price: $63,850
Cash invested: $90,000

Trying to find the first possible deal in RE after living 2 years in the US. Having problems and solutions, and obviously making huge mistakes.

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

5% growth rate in the neighborhood real estate market (sales)
Similar projects in rehabs with sales price of 170k + in 1 miles radius
Calm neighborhood compared to some other districts there
Good infrastructure, stores, schools, good neighbors
Good "bones" of the building
Good starting prices compared to other neighborhoods
Some examples of flippers' success working in the neighborhood

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

MLS. We figured out that the price was little bit higher than it should be. The price was lowered.

How did you finance this deal?

Own savings

How did you add value to the deal?

Rehab, renew and sell

What was the outcome?

No outcome yet

Lessons learned? Challenges?

No more 100% cash
MLS is tricky - you pay too much
You have to go deeply into the analysis of what you buy
You have to have reserves
You have to find cash flow deals with lower investments for repairs / faster outcome