Our first Fix n Flip Project - Pros and Cons

[Jake Denning]

Investment Info:

Single-family residence fix & flip investment in Pearland.

Purchase price: $130,000
Cash invested: $46,500
Sale price: $232,000

We just finished our first Fix N Flip project and overall, I would say it went well.

We purchased this property using Hard Money and ended up having about 36k of our own money in the deal between closing costs, having to bring our own money to the table, (3k overage on our rehab budget) put us all in at 46,500. We just sold it 10/31/19 for 2k over asking at $232,000 with $5500 in seller contributions. We also pulled it off in exactly 90 days which was great as well. This left us with roughly $56,000 to us. After you subtract our own money in the deal we made right between $19,000 and $20,000. This was split between myself and a partner. I could not be happier with the first out come and definetly we learned alot on this flip!

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

I was ready to jump on my first real investment property!

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

We purchased this deal from a wholesaler in my area. We did not do a whole lot of negotiating as perhaps we should have. The competion is quite high so when the opportunity came we jumped.

How did you finance this deal?

We purchased this deal with Hard-money.

How did you add value to the deal?

We did a total cosmetic rehab on this property, as well as the typical landscaping/cleanup.

What was the outcome?

Overall the outcome was great! We made a bit of money but we learned SO MUCH more through this one transaction.

Lessons learned? Challenges?

We had budget issues and trying to stay on course. We should have payed more attention to comps but the lack of comps also saved us in this particular flip. Our contractor stayed on track and mostly on budget with the exception of 3k.

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

I partnered with my Agent on the deal as I am not currently a RE agent. This was one of the best things about this deal, I for sure could not have done this without her! We also used professional photography, staging, and an interior designer to help keep us on track on this first one. It cost us a bit more but in the long run I think it saved our butts!