Brigham City Fix & Flip

[Nathan P.]

Investment Info:

Single-family residence fix & flip investment in Brigham City.

Purchase price: $156,000
Cash invested: $66,000
Sale price: $265,000

Purchased this home on seller financing with a 10 year balloon because we had an option to rent it as two units and utilities were seperately metered.

Sale Price=$265,000
Rehab Costs=$44,000
Closing Costs=$15,000
Holding Costs=$5,500
Purchase Price=$156,000

Net Profit=$44,500

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

This property was previously used as a legal duplex and could have easily been converted back. Everything was still seperately metered. This made the deal feasible in the long term and short term. I like the seperate exit strategies.

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

I used road side signs ("We Buy Houses"). I got the call and visited him that day. I sent him two offers that day as well by email. A cash offer and a seller finance offer. It took him about two weeks but he did call me back after he sorted it out with his soon to be X-wife and he took my seller finance offer without anymore haggling.

How did you finance this deal?

I acquired a money partner that I had met from a local REIA and he brang in $15,000 down for the seller and then we took over his loan. The same partner then financed the rehab costs of $44,000 and other holding costs.

How did you add value to the deal?

Carpet paint kitchens and tile.

Then I marketed the property for sale as both a duplex or a single family with a mother-in-law apartment