Mid-Century Farmhouse Fix and Flip

[John Williams]

Investment Info:

Single-family residence fix & flip investment in Powder Springs.

Purchase price: $74,000
Cash invested: $142,000
Sale price: $199,000

Mid-century farmhouse fix and flip project.

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

Margin potential and high demand for homes under $200k

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

Local wholesaler.

How did you finance this deal?

Commercial line of credit (regional bank) and cash.

How did you add value to the deal?

Complete renovation with custom design elements.

What was the outcome?

Property went under contract within 4 days at full asking price of $199k

Lessons learned? Challenges?

Always have contractors sign a lien waiver for completed work, and seek 4 sided brick properties with existing driveways/parking features to reduce renovation costs.

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

As a licensed agent, I list and sell all of my own properties. I recommend building a lending relationship with small regional banks vs commercial lenders. Rates tend to be more competitive, and assuming your projects are successful there's a great opportunity to increase credit lines substantially over time.