Fix & Flip Complete! Huge Educational Renovation

[Cassidy Burns]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $120,000
Cash invested: $69,326
Sale price: $182,500

INVESTMENT PROPERTY SUCCESS???
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I put the questions marks because this deal was a HUGE educational piece. A lot went right but a lot went wrong. Keep reading to see the how to avoid some of my mistakes.
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What I would have done differently :
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-Solidify your comps. Make sure you are 100% certain your list price is legit.
-NEVER be the nicest house in the neighborhood.
-Pay the extra $$ and do a more thorough inspection on the initial walk through. Bring HVAC, plumbing professionals in early, sometimes GCs can’t catch every last thing.
-Don’t get emotionally attached. I loved this house, I think we did an awesome #transformation on this house, but the market chooses price. I originally listed for $230,00.... there were a few houses that sold for this but their Days on Market was around a year . I thought, “well mine is so nice it will sell fast,” WRONG! I held for 10 months increasing holding costs and decreasing profits. If I would have listed at $199,900 at first I would have made $20,000 more than I did !!!!
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But it wasn’t all bad. We got some great marketing out of this house, really establishing the BurnsPropertyGroup Brand. We learned A TON, and still made $$$. You can’t get all of that from college...
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Take a look at what really matters, the #s:
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-Purchase Price: $120,000
-Closing Costs: $1,303.58
-Repairs/Supplies: $27,673.19
-Project Management: $4,514.31
-Holding Costs: $15,799.29
-Commissions: 10376.13
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We sold this house for $188,500 w/ $7,000 seller credit. $182,500 all in.
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Investors ROI: 8.47%
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Total Profit: $6,415.29
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Would I do it again?
-Hell yes, i’d just list at $199,900.
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On to the next !

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

Great margins at the start. $230,000 projected outsell.

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

Real Estate Agent brought it to me......

How did you finance this deal?

80% my funds, 20% private investor

How did you add value to the deal?

Interior cosmetic

What was the outcome?

$6,500 profit. Huge lessons learned

Lessons learned? Challenges?

-Solidify your comps. Make sure you are 100% certain your list price is legit.
-NEVER be the nicest house in the neighborhood.
-Pay the extra $$ and do a more thorough inspection on the initial walk through. Bring HVAC, plumbing professionals in early, sometimes GCs can’t catch every last thing.
-Don’t get emotionally attached. I loved this house,

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

Yes...... Not good. Had to fire her and rehire someone else.