Fix and Flip #10 off market deal.

[Gus Muller]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $190,000
Cash invested: $73,428
Sale price: $329,900

Fix and Flip #10 off market deal. House needed substantial rehab including kitchen, baths, electrical, plumbing, furnace, AC, windows, interior and exterior paint, concrete work, etc.

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

Solid original owner rambler that had good size, large lot, and in a good area. Needed substantial rehab, but timing of purchase was good as we were able to tackle it over the winter.

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

Off market through a real estate agent. Negotiated to $190K with sellers.

How did you finance this deal?

Purchased in cash using our HELOC.

How did you add value to the deal?

Complete rehab including mechanicals.

What was the outcome?

Good return of about $38K plus $11K listing commission, for a total income of about $49K.

Lessons learned? Challenges?

Learned that we listed it a little too high off the bat, and this led to longer hold time. Also, the house lacked the "charm" of the older houses in the area and was pretty plain for most buyers. Will keep this in mind in the future.