84.53% return -- Fix & Flip -- Thank you very much

[Mathieu Gagnon]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $36,000
Cash invested: $102,423
Sale price: $189,000

Project summary
Asking price: 75 000$
City appraisal value: 94 000$
Purchased price: 36 000$

Purchase expenses: 950$
Holding cost: 3 950$
Rehab cost: 61 523$
Total costs: 102 423$

Sold price: 189 000$


Profit: 86 577$


Money invested: 102 423$
Return on invested capital: 84.53%
Annualized ROIC: 144.91%

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

The experience, the numbers, the purchasing price, the potential return.

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

MLS.
Paid cash and with being very flexible for the purchasing date

How did you finance this deal?

Cash // Business Line of Credit at 1.99%

How did you add value to the deal?

Redo practically everything in it.

What was the outcome?

Great profit of 86 577$

Lessons learned? Challenges?

I'm no big fan of "redoing everything".
We had to work with a house that had more than 100y.
The conditions inside were not very good/healthy.
We needed to deal with sewage problems...

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

For the purchase and I sold it as an agent.