2980 Fairwood Avenue Fix & Flip | 1st Deal!

[Stacy Woodford]

Investment Info:

Single-family residence fix & flip investment in Columbus.

Purchase price: $1,000
Cash invested: $38,500
Sale price: $55,000

This house was distressed. There were multiple code violations, delinquent taxes, and in need of probate services. Unsuspected termite damage to one entire wall.

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

Because this was distressed, there was far less competition from other investors. More distress = larger rehab.

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

I found this deal by "driving for dollars" in and through the 43207 zip code.

How did you finance this deal?

I financed this deal through cash for the purchase and labor costs and paid for materials with credit cards.

How did you add value to the deal?

All value was added to this deal through the rehab. Starting from an unlivable, blighted structure to having all new HV/AC, electrical, and plumbing systems, along with a new roof and front porch, this house gained its value from the rehab.

What was the outcome?

This was a modest deal that was my first and got me into real estate investing initially.

Lessons learned? Challenges?

There were three lessons learned. (1) Plan for unforeseen problems during the rehab. Termites added much more work than we initially realized. (2) Be as accurate as possible on the ARV. (3) If you are selling to a FHA buyer and have not owned a property more than 90 days there will need to be two appraisals done for the lender. The first appraisal came in at our list price ($63,000) and the second came in at ($55,000) and we had to cut our price losing $8,000 on the deal.