Fix & Flip Property Lessons

[J. Clark Baird]

Investment Info:

Single-family residence fix & flip investment in Louisville.

Purchase price: $136,000
Cash invested: $35,000

4 bedroom, 3.5 bathroom triplex is available for $200,000. With over 2,000 square feet, sitting on a gorgeous corner lot, this house is a deal. Features a master bedroom with master bath. Also has large unfinished basement for storage and a 2 car garage.

Renovations include:

New kitchen backsplash
New flooring (vinyl along with new carpet in the upstairs bedrooms)
New fixtures
New paint
New tile shower/bath
New vanities
New doors
New electrical
New HVAC
New landscaping

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

Purchased the house at well below market value and saw potential in the property based upon the size and layout.

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

Owner called me from my bandit sign. We had to resolve several issues: the house had been posted as a property bond in a criminal case, was in foreclosure and the owner demanded more money at the closing table.

How did you finance this deal?

Hard money.

How did you add value to the deal?

Rehabbed the property.

What was the outcome?

Just listed property (unknown outcome)

Lessons learned? Challenges?

Learned that I need to directly supervise my contractors, learned the steps needed in a rehab.