First Fix n Flip in Charleston SC

[Brad Baker]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $123,000

Cash invested: $20,000

Sale price: $193,000

We acquired this property for 123,000 in December 2018. There was light rehab work involved and we had to replace the outside HVAC condenser unit. All repairs and holding costs added up to just under $20,000. We listed the property for 197,900 and had a contract for $193,000 in 30 days. All in all this was a very profitable investment.

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

I liked the price range and location. Anything under 200,000 in our market has a very strong buyer base.

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

This deal was referred to me by a fellow agent.

How did you finance this deal?

We bought the house 'Subject to' the existing financing and gave the sellers $2,500 at the first closing. The loan balance was about 75,000 and the payments were about $600/month. This made holding costs very low. We then paid them the remainder of the $123,000 purchase price when we sold the house at the 2cd closing.

How did you add value to the deal?

The house was not in that bad of shape, just cosmetically very dirty. We replaced all the flooring, and gave it a fresh coat of paint, replaced some light fixtures, and reglazed a bath tub. The previous owner had a daughter that regularly dyed her hair red so the tub was stained red. The outside condenser unit also had to be replaced.

What was the outcome?

We ended up selling the property for 193,000 in about 30 days earning us about $31,000 profit.

Lessons learned? Challenges?

The whole unit was originally all carpeted except for vinyl in the kitchen. We replaced all the carpet with new carpet, but we should have put down a nice laminate in the living area because that's what comps in the community had. That extra $1,000 would of helped us command several thousand dollars more in my estimation.

[Jay Hinrichs]

this was out side of Charleston proper correct and it looks like an attached townhouse is that correct.. ? can you be more specific on location.. ? Nice job though after tax that's like 8 to 10 years of cash flow on a rental LOL..