Quick flip in Los Angeles with plenty of lessons learned

[Dave Chu]

Investment Info:

Single-family residence fix & flip investment in Los Angeles.

Purchase price: $755,000
Cash invested: $120,000
Sale price: $1,160,000

Quick turnaround with a lot of lessons learned

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

The numbers made sense and I flipped homes before

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

My wholesaler brought this deal to me, waited a few days and knew I would be able to negotiate the acquisition cost a bit more

How did you finance this deal?

Hard money 80% LTV, interested only, 6 month renewal at 1 point if loan volume.

How did you add value to the deal?

Added a second bath which ultimately became the master bath. Enclosed some walls to create a mud room/laundry room. Made the backyard more aesthetically pleasing.

What was the outcome?

Revamped a home in the neighborhood, brought in a happy buyer, made my ROI and moved on to the next

Lessons learned? Challenges?

General contractors... major lesson learned. Be sure to interview plenty of them before committing to one.