Fun Fix n Flip in North Charleston South Carolina!

[Stephen Richerson]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $93,000

Sale price: $181,000

Purchased from online auction. Raised the money for down payment and rehab so $0 out of pocket for this deal. 

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

auction.com not much room for negotiating.

How did you finance this deal?

Hard money lender, Lending Hq. Private lenders.

How did you add value to the deal?

Either painted or replaced just about everything.

What was the outcome?

Under contract very quickly at asking price. Over $30k in profit.

[Stephen Richerson]

@James D Brown,  the locale neighborhood did affect my decision.  The development is tucked back from some trailer parks and less appealing areas.  We liked the neighborhood.  There are definitely some areas of North Charleston I will not invest in because of safety.  It's not a bad thing to end up with the nicest house in the hood, that's what the rehab is about.  The main risk you might be referring to is what I call "Pioneering" it's the pioneers that sometimes have arrows in their back lying dead on the ground.  

Pioneering is being the first investor to fully rehab a property in the subdivision or area. There are no real comps to go off of. Once another investor has successfully rehabbed a house and raised the ARV $/sft, then it's game on. You have "proof of concept" and can justify investing in that hood. A great strategy that one of my partners on our team has done is acquire all the low end homes in a specific hood and hold them. Allow the area to appreciate, collect the cashflow and after other investors have successfully flipped some homes there, rehab and liquidate.

So to sum it up, be weary of being the pioneer flipper in a hood and trust your gut on the direction of a particular part of town.