Light fixer SFR flip success

[Robert Laird]

Investment Info:

Single-family residence fix & flip investment in Washougal.

Purchase price: $200,000
Cash invested: $40,000
Sale price: $300,000

Contributors:
DJ Fry @Carlos Carbajal

A small home in Washougal was updated and flipped in 120 days.

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

Low purchase price and light remodel with home being built in 1991.

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

Found this deal through mailers, it was not listed. I walked the property with the owners and negotiated the price down after walking the property. Owners wanted to sell and move quickly.

How did you finance this deal?

Hard money for the 1st position at 12% interest and 3 points. Private money for the 2nd position at 15% interest.

How did you add value to the deal?

Touched every surface, replaced cabinets, counter-tops, and appliances. Replaced floors, repainted interior, and exterior. Built deck in the backyard.

What was the outcome?

Bought the property, renovated entire property, listed, and completed the sale in 120 days. Net profit: $35,000

Lessons learned? Challenges?

Tailor the renovation to the type of buyers. Do not overdo the remodel with expensive finishes, but don't do only half a remodel either.

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

DJ Fry with Parker Brennan Real Estate listed the property for us and we accepted a full price offer 5 days later.

@Carlos Carbajal