This report is on my first rehab.

[Thomas L Hall]

Investment Info:

Single-family residence fix & flip investment in Renton.

Purchase price: $184,000
Cash invested: $81,000
Sale price: $265,000

SFR with detached garage on a large lot. We replaced all the windows, had to do a lot of interior drywall work due to previous owner had stripped some rooms to the studs. Replaced bathroom floor, repainted interior and exterior, new roof. Minor electrical work. Exterior landscaping improvements.

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

I wanted to rehab a property for myself rather that continue to remodel homes for others.

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

I had a realtor showing me properties and found one that fit my criteria. I just offered a lower price than the seller was asking and he accepted. No counter was offered.

How did you finance this deal?

Bank financing.

How did you add value to the deal?

We totally rehabbed in the interior, replaced all the windows which required interior and exterior trim, interior drywall where it had been stripped off, new flooring in the bathroom and new fixtures, new roof on house and detached roof, exterior and interior painting. New kitchen counter top, flooring , sink and fixture. New vapor barrier in crawl space. Landscaping clean up and improvements.

What was the outcome?

Successful flip but carrying charges, commissions and rehab expenses only netted us 15K in profit. We did all the work, me, my wife and her son. It took us all summer every weekend.

Lessons learned? Challenges?

Mainly use the BRRRR method and hold the property for rental. Now it tax appraises for over 100k more than we sold it for. Cash flow and appreciation would have been a much more profitable outcome.

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

Yes. I would refer the agent if requested.