Fix & Flip turned Buy & Hold

[Michael Cinquemano]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $82,000
Cash invested: $85,000

Started as a fix & flip and renovation budget went to high. My partner and I decided to keep it as a buy & hold for the time being.

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

Comps in the area showed a good ARV.

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

Found on the MLS. Negotiated it by estimating renovation costs and offering cash offer with fast close and no inspections.

How did you finance this deal?

Construction Loan

How did you add value to the deal?

Complete remodel, and added a true Master Bedroom and en suite bathroom.

What was the outcome?

We ended up spending to much on the rehab, so ended up keeping it to rent out for a few years.

Lessons learned? Challenges?

Biggest lesson learned is to dig deeper into renovation numbers. Also, the original Master bedroom ended up being an addition that had to have more slab and new plumbing added. Anytime something looks like it was not part of the original structure, I will add a significant amount of money in case of permit issues, or unforeseen poor construction.