Most recent fix and flip in Edinburg, Texas

[Boone Tyson]

Investment Info:

Single-family residence fix & flip investment in Edinburg.

Purchase price: $90,000
Cash invested: $35,000
Sale price: $150,000

Great fix and flip. My favorite project we have done so far. Had some very unique red tape to go through on the purchase and actually took over 3 months to purchase. The flip itself on the house went according to plan. Budgeted very well on the inside and totally missed it on some of the work needed on the exterior. Great learning house and still a successful flip.

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

It was a strong location and really great purchase price. I knew it was off market and so we weren't really competing with anyone and could afford to be patient.

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

This deal was through a work associate. She had a family member who needed to sell. We offered a very reasonable purchase price and then after inspections, discovered that the roof needed replaced and also possibly the AC. We then renegotiated the cost of these two items off of the original contract price.

How did you finance this deal?

We used a line of credit and therefore structured our offer as a cash purchase.

How did you add value to the deal?

We fixed the actual systems that needed taken care of, including plumbing, HVAC, and electrical. We replaced the roof. We painted, redid the flooring, quartz countertops, marble backsplash, and redid the master shower. Updated all lights and fans. Did a major clean up on the exterior and landscape as well.

What was the outcome?

We sold to a family friend who was more than happy to put the property under contract 90 days before we completed the work and a predetermined price. We then allowed her to pick out some of the interior decor so that it better suited her taste.

Lessons learned? Challenges?

This house was on half an acre. Grass was over waste high and we COMPLETELY underestimated the volume of stuff. Total volume of trash and debris removed from the property was roughly 125-150 CUBIC YARDS, 5 of the large commercial dumpsters!
Also, it had been vacant, so the water meter had been removed. The process to get water required over $2,500, finding out the appraisal district had wrongly recorded the legal description of the property and resolving that, then took 4 weeks to connect!

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

Worked with some wonderful new subcontractors on this project that we will continue using in the future. Developing a really great team! Also worked closely with some city employees due to some of the items that needed remedied. Those are great contacts to have in case of emergency.