Second flip, still learning!

[Angie Ruiz]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $27,000
Cash invested: $70,000

Single family home, 3 bed/2 bath, finished basement, attic

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

The purchase price was right within my budget.

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

Found on MLS. property was agent owned, so I was able to negotiate commission and price reduction.

How did you finance this deal?

My own cash and my first investor, a family member that jumped into the project with me at the last minute.

How did you add value to the deal?

The house was gutted and ready for rehabbed or so I thought, however, additional gutting needed to be done in all three levels (first floor, attic and basement) to create an open concept and expand the master bedroom. All new electrical/plumbing/furnace/water heating and some roof repairs. I decided to keep original hardwood floors on main level and added all new flooring to the rest of the house. All new drywall, bathrooms redesigned and expanded closet space.

What was the outcome?

The work came out as expected, very well done and under budget. I used a new contractor this time and I was pleasantly surprised with the numbers in the end.

Lessons learned? Challenges?

I learned that knowing the area is crucial and missing out on specific details such as bathtubs, colors, etc is can become big issues with buyers/renters.