1st Fix And Flip in Lexington, KY

[Joseph Back]

Investment Info:

Single-family residence fix & flip investment in Lexington.

Purchase price: $45,000
Cash invested: $100,000
Sale price: $135,000

This was my first flip. Property was a 4bd/1ba cape cod style home in an up and coming neighborhood of Lexington, KY. I found the deal on Craigslist and get it under contract quickly. Purchased property with a tenant in it who was 6 months behind on rent, got him evicted within 45 days after close. Spend the next 9 months renovating and learning a ton before listing and selling FSBO for $135k.

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

Knew this was an up and coming neighborhood and was always looking for deals.

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

Got an automatic email notification that is was posted FSBO in Craigslist. Called the seller immediately and got a viewing set up for the next morning. Showed up and saw how terrible of condition the house was in and made a cash offer, seller accepted with no negotiation.

How did you finance this deal?

Partnered with my father and used HELOC on his personal residence to purchase and do the full remodel.

How did you add value to the deal?

Found and negotiated the deal. Oversaw construction and managed contractors.

What was the outcome?

Ended up being all in at $100k ($45k Purchase + $55k Remodel). Listed for $139k FSBO and went pending on day 7 at $135k. Sold for $135k 2 months later.

Lessons learned? Challenges?

Learned a ton about managing contractors and the true costs of a remodel.