My first flip, experience and valuable lessons learned

[Angie Ruiz]

Investment Info:

Single-family residence fix & flip investment in Chicago Heights.

Purchase price: $30,000
Cash invested: $60,000
Sale price: $135,000

Single family, 4 beds/2 baths, brick, 2 car attached garage, family room, basement, attic, studio, living room, dinning room, kitchen. 2800 total sq footage after remodel.

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

The purchase price was right and within my budget.

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

I found the deal through the MLS. Property was own by HUD.

How did you finance this deal?

My own cash

How did you add value to the deal?

The house was a complete gut rehab. There was no plumbing (stolen), outdated electrical, no heat/AC, unfinished attic and a bad layout. I added value by installing all new systems, finishing attic, expanding attic bathroom, expanding kitchen, new flooring, new carpeting, all new tile, appliances & granite counter tops.

What was the outcome?

The house came out looking way nicer than expected. The contractor's I worked with were very professional and committed to make the house look great. In the end, we disagreed in the contractor's "added charges", however, the work was done well and all I wanted to do is sell and move on to the next.

Lessons learned? Challenges?

My first flip, was very close going bad. Thankfully, I was able to close with some profit (less than expected due to property taxes and buyer closing cost credits, etc). I think I got way ahead of myself for being my first flip. The rehab worked that needed to be done was intense, anyhow, I pulled through with a lot of passion and dedication (and money) and the biggest take out of this project is the experience! dealing with contractors, putting everything in writing, setting up schedules etc.