First House Flip in North Alabama

[Ben Nelson]

Investment Info:

Single-family residence fix & flip investment in Moulton.

Purchase price: $22,658
Cash invested: $68,680
Sale price: $91,132

We purchased this house as a Medicare sale. It needed LOTS of work but ended up looking great! This was our first investment and we learned a lot about managing contractors, who to choose, what to do ourselves and what to farm out, and about flipping in general. Planning to do lots more and ready to go!

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

Our plan was/is to use flip profits to fund rental purchases so we were looking for a good opportunity in our area.

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

This house had actually been on the MLS for 5 years and no one would touch it! Lucky us.

How did you finance this deal?

All cash purchase and rehab.

How did you add value to the deal?

Outside of general facelift, floors, drywall, painting, countertops, tile bathtub surround, all new trim, sod outside, re-done shed, etc, etc....we updated the funky layout from a 4 bedroom 2 bath to a 3 bed 2 bath. The only entrance was through the master bedroom...had to go through the master, down a long hall, to get to the living room. Not cool. Put in a new front door, made the tiny 4th bedroom a walk-in master closet, and boom! 3 bed 2 bath with large master suite.

What was the outcome?

We made money and helped a lady buy her first house!  Super happy about that for our first deal.

Lessons learned? Challenges?

Learned a TON about how important a good contractor and sub contractors are for honesty, accurate pricing, and realistic start/finish dates. We are investing lots of time and effort into getting that right on the next one. Found a GREAT realtor and learned how amazing it is working with rockstars.

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

We worked with Kevin Primeau with Exit Realty North in Huntsville. Highly recommend him.