Fort Worth, TX - Fix & Flip

[Kyle Mccaw]

Investment Info:

Single-family residence fix & flip investment in Fort Worth.

Purchase price: $110,500
Cash invested: $5,000
Sale price: $225,000

Purchased and rehabbed with private money funding. This property had a great location but desperately need to be updated to modern expectations. The first 6 pics are before. The others are the final. This was a complete gut job. I did just about everything but a new roof. Went into contract the first day I placed on the market for $10k over the list price.

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

Location, potential profit

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

Referral from someone that knew I was an active buyer of houses that need love.

How did you finance this deal?

private money

How did you add value to the deal?

This property had a great location but desperately need to be updated to modern expectations. This was a complete gut job. I removed a wall that separated the kitchen and living areas, converted from a 1.5 bath to a 2 full bath, new water heater, new HVAC, foundation repaired, paint, doors, fixtures, appliances, granite, cabinets, landscaped original wood floors/stained dark walnut, painted inside and out, new sod/landscaping....basically everything but a new roof.

What was the outcome?

Went into contract the first day I placed on the market for $10k over the list price.

Lessons learned? Challenges?

I invested more in marketing the property for the sale side. Money was well spent.

[Kyle Mccaw]

@Michael Liebrum - my financing balloons at 12 months. 

@Jenna Myhre Estimating rehab expenses is the hardest and scariest part of buying a distressed property. You learn from experience. Until you feel comfortable have a trusted vendor price it for you. I have a list of contractors I use constantly for my flips and property management company. My costs are lower due to volume.