1686 Jonathan Drive | 2nd Fix & Flip

[Stacy Woodford]

Investment Info:

Single-family residence fix & flip investment in Columbus.

Purchase price: $2,900
Cash invested: $41,250
Sale price: $80,000

This was a distressed property with considerable fire damage. The repairs were pretty straight forward as there wasn't any structural damage and it needed a full gut. There was a good deal of delinquent taxes.

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

Due to the fact that this house was fire damaged, there was very little interest from other investors.

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

I found this deal by driving for dollars in the 43207 zip code. This house was neglected and left sitting for at least twelve months. I negotiated it mainly by helping the owner. It was a considerable liability for her and we helped make sure all the encumbrances on the home were taken care of.

How did you finance this deal?

Due to the damage done by the fire and the large amount of delinquent taxes, I was able to pay cash for the house. I financed the labor with cash and the material with credit cards.

How did you add value to the deal?

The value was added to this deal mainly through the rehab of the property. Due to the extent of the fire damage, we had to install all new mechanical systems throughout the house.

What was the outcome?

The house sold for slightly more than what we thought and was even able to sell in the winter season. This was a great learning experience and it was nice to not have anything major unexpectedly come up.

Lessons learned? Challenges?

Distressed sellers are much more motivated to sell -- they are much easier to work with. Beginning from the studs helps with resale because everything is new.