Tiny House - Fix and Flip

[Melanie Hartmann]

Investment Info:

Single-family residence fix & flip investment in Baltimore.

Purchase price: $55,000
Cash invested: $30,000

We are in the middle of rehabbing this property. Will update once it's sold!

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

Even though it requires a gut renovation, the property was small (less than 800 sq ft with no basement) and is located in a great area!

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

We found this deal by cold-calling. I made an offer 15K less than what the seller asked for over the phone. The seller got back to me a few days later to tell me that if I could match the highest offer he received (55K) he would rather sell the property to me.

How did you finance this deal?

10K downpayment of my own cash and then used a hard money lender to finance the rest of the purchase price and 100% of the rehab.

How did you add value to the deal?

Renovating the entire property

What was the outcome?

To be determined

Lessons learned? Challenges?

Thus far, we have had to fire the contractor that we hired. It is incredibly important to only include reliable and trustworthy people on your team.

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

Yes, I am currently working with a real estate agent and his wife is an interior designer. We have gone over some rough ideas of what to do with the property moving forward and now I'm just waiting on bids to come in for what the work will actually cost to determine best next steps.