!!!$200,000 PROFIT!!! on our 10-month flip
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $454,639
Cash invested: $146,722
Sale price: $808,000
$200K profit net $180k but still! HOME RUN. This house sat for 6 years. it was the worst house in a very nice neighborhood. Fixed everything and blew our budget carry/rehab costs were $146K and the project took 10 months. High end finishes and every penny spend was recouped. 3600sqft 5 bed 3 ba project to self perform. This Flip put us debt free 100%. Well worth the pain but I'm not willing to take on a flip of this magnitude again unless every aspect is subcontracted.
What made you interested in investing in this type of deal?
dilapidated lake house surrounded by beautiful homes. Comps showed an ARV of $675-725 Rehab estimate was $80-120k
How did you find this deal and how did you negotiate it?
This was on the NWMLS and a HUD home. we jsut offered the lowest acceptable price HUD would take
How did you finance this deal?
HARD MONEY and some personal
How did you add value to the deal?
We replaced the deck, floors, popcorn, doors, kitchen and baths, added curb appeal natural light and a waterfall.
What was the outcome?
We CRUSHED it! after blowing the high end of our budget($80-120k) by $28,000
Lessons learned? Challenges?
High end custom homes you can add add add and still see a return if done tastefully.
BEWARE of architectural committees. we were forced to put the most expensive roof on this house in order to not violate the CC&R's which were amended in 2010.
My Model is not scalable until I stop self performing and start using subs
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Sound Equity Lending
