First BRRRR turned Flip

[Justin Melendez]

Investment Info:

Single-family residence fix & flip investment in Hope Mills.

Purchase price: $35,000
Cash invested: $41,437
Sale price: $114,000

Initially bought this deal to BRRRR. As the project matured I decided it would be better to just flip. I wasn't impressed with the neighborhood and the rents were lower than projected.

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

This was my first deal as an investor. Single Family Home made it so I can do the math on a napkin or a BP Calculator ;)

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

The deal was on the MLS. I initially offered on the house a month before I actually got my final offer accepted. My initial offer was rejected, and the seller took a full price offer; that deal fell through.

I kept tabs on the property. I noticed the seller lowered the asking price a few weeks later. I took this as my cue to make another offer. She countered, I accepted. All though the house was being sold “as-is” , we further negotiated sale price during the due diligence period.

How did you finance this deal?

Personal Savings

How did you add value to the deal?

Pretty much rehabbed all of it. Roof, paint (interior/exterior), subfloor, floors, duct work, front/back yard, fence, interior/exterior doors, master bath, converted half bath/laundry to full bath, moved laundry to utility room, kitchen counters, cabinets, appliances, deck, and many more minor details.

What was the outcome?

Flipped the house, made a profit, had fun, learned a ton, built relationships.

Lessons learned? Challenges?

I decided to take on demolition and landscaping myself to save money. This ended up being A LOT more work than I expected. I spent more time than anticipated working on the house. In the end, it saved me about $2k. In the future, I will make sure the deal is sweet enough to not fret about $2k.

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

Season to Season Contracting LLC; JTOPP Realty