Sports Haven Dr | A Houston Investment Case Study

[Colin Williams]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $155,000
Cash invested: $43,227

This property is 4 bed and 2.5 bath dream home that sits in an active community a short ride away from Lake Houston Golf & Country Club. I decided to do a cosmetic rehab and take it up a notch. The rehab consisted of new paint, flooring, countertops, backsplashes, cabinet faces, pulls, and landscaping.

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

This property was perfect for multiple exit strategies depending on finishes.

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

The deal was found through a wholesaler. I had walked several properties he presented, but this one had the most potential and the numbers worked.

How did you finance this deal?

I used hard money and private money

What was the outcome?

The property went under contract but the buyer backed out due to lack of financing. I am converting the property to an AirBnB.

Lessons learned? Challenges?

An agreed to detailed scope of work will save you! make sure your contractor and any subs are aware of what has to occur at the Jobsite. Make sure your buyers are vetted so that their back end DTI will be under the bank's threshold.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with Easy Street Capital on this deal. Kelly Smith was great to work with.

[Brian Alfaro]

Following! Curious about the cash flow of an Airbnb in the suburbs as well. I’ve heard from most experienced investors it’s harder to cash flow outside the loop. 

Congrats, @Colin Williams! Wish you the best of luck with this one.