My very first fix and flip deal in the Washington DC market

[Jonathan Jones]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $330,000
Cash invested: $175,000
Sale price: $899,000

We purchased this property in the Petworth area of Washington, DC. This particular area of Washington DC is becoming more and more saturated with real estate investors. Fortunately the contractor had some connections with property owners in and around that area enabling us to secure a property quickly after forming an LLC/partnership agreement

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

I have always been interested in real estate and learning how to rehab properties. Just an overall fascinating experience.

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

We found the deal through networking and speaking to neighbors. Negotiated with the tenant and the out-of-state investor.

How did you finance this deal?

We used an HML

How did you add value to the deal?

We completely flipped the property. High end fixtures and appliances. Additionally, in our market rentals are popular. We found a way to make the basement into a rental space while still offering awesome value to the buyer.

What was the outcome?

We were able to sell the properly quickly (7 days) in a some what stagnant market.

Lessons learned? Challenges?

Partnerships are difficult. People have very different views of what it looks like to own a business and build a company. Being on the same page is critical to understanding how to proceed forward. As long as people are on the same page and understand each other, it should be a seamless partnership. Contracts are crucial in understanding what is agreed upon.

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

Not at this time