Fix and Flip South Charleston, WV

[Jordan Crist]

Investment Info:

Single-family residence fix & flip investment in S Charleston.

Purchase price: $86,900
Cash invested: $77,358
Sale price: $207,000

Home located in very nice neighborhood in South Charleston. Days Held 263. DOM 9.
Renovation Cost $76,860
Interest Paid $8,761
Profit $31,978

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

Love the neighborhood. This is the 2nd very successful flip we've completed on this street

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

Sellers were the parents of a long time high school friend. We negotiated with them for a couple months. Upon doing title work, we found substantial tax liens on the property that killed the deal. Home owners decided to let house go back to the bank. They notified us and told us the exact time and date of the auction. Showed up to the courthouse and was the only one present, purchased for the price of existing mortgage. This deal was all about building positive rapport with the seller.

How did you finance this deal?

A blend of hard money and private money.

How did you add value to the deal?

Complete remodel from roof to basement and everything in between - new kitchen and bathrooms, flooring, light fixtures, paint.

What was the outcome?

Oddly enough this house sold to another high school friend who grew up in the neighborhood as his parents owned on this street. It was very gratifying buying from friends (well negotiating until it went back to the bank) then ultimately selling to another friend.

Lessons learned? Challenges?

The biggest challenge was the basement. After removing the walls we found wet spots and drainage issues. We also had trouble with the bathroom plumbing. The basement required a lot more rehab than our projections so we had to cut back on certain elements including the driveway, which was due to be replaced but we ran short on funds towards the end. Lesson learned - always have a contingency fund.

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

We sold the property with Lia Dorchinez who is a realtor for Real Estate Central in Charleston, WV. She is an excellent agent for both buyers and sellers!