First flip in the books

[Matt McGuire]

Investment Info:

Single-family residence fix & flip investment in College Station.

Purchase price: $162,000
Cash invested: $30,000
Sale price: $245,000

This was someone else's rental property that had a tenant in it for twenty some odd years. The owner never did any home maintenance and evidently the tenant was ok with that. It was in very bad shape and had been taken over by the surrounding woods.

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

Generating capital.

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

A realtor brought me the deal. It was not listed yet but another realtor at his brokerage was representing the seller so we did the deal before it hit the MLS. The seller initially wanted $175k for it and we negotiated it down to $162k.

How did you finance this deal?

Hard Money

How did you add value to the deal?

Land clearing, exterior/interior paint, flooring, appliances, kitchen remodel, and some masonry work.

What was the outcome?

It was a success! I made some money, albeit not a ton, but I did my first flip. That was the main goal on this one. I was willing to do this even if I lost some money because of the education I would get from experience.

Lessons learned? Challenges?

Too many to list. I learned about the HML I used and how they do business. I learned about estimating the rehab and that it went over budget. I learned not to trust a realtor based on their ARV number. I learned "curb appeal" means different things to different people. Overall, it was a great experience and I am going to do it again. But I did learn several lessons.