First Rehab Investment

[Rob Whittington]

Investment Info:

Single-family residence fix & flip investment in Baton Rouge.

Purchase price: $10,000
Cash invested: $85,000
Sale price: $107,000

This was a gorgeous renovation in the central neighborhood of St Gerard Place. This 3BR, 1 1/2 BA 1 story home is located near Belaire High and Longfellow Park. It sold above market and now appreciates over 1000%/year (Redfin statistics). This project was a great success for all the parties involved, and became a major stepping stone for RLW Home and Property Solutions, LLC.

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

I was rehabbing properties as a property manager, when I was approached about personally investing in a rehab project. Since I was already fixing properties after the flood of 2016, I figured it was time to invest in myself.

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

The property was already purchased, and I was approached by the owner to rehab it.

How did you finance this deal?

I took out personal loans, which I probably won't do again.

How did you add value to the deal?

I was project manager for the rehab, so I coordinated materials and worked with contractors to finish the project. I also

What was the outcome?

It was a 6 month project, and after listing it at $109,000, it sold in three days. The appraisal came back at $107,000 which became the final purchase price.

Lessons learned? Challenges?

I learned that you can't guess at numbers. I underestimated the cost of the rehab, and didn't determine the ARV before committing to the project. It was also challenging finding reliable contractors to complete their scopes of work on time at the cost that they quoted. I'm extremely thankful I was able to make a profit on this deal.

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

Phil Debin with Goodwood Realty, formally with Keller Williams, was the listing agent on the property. He was the main reason the property sold in three days for the listing price. I would highly recommend his services to any real estate investor looking for a great real estate agent.