First purchase, flip & listing!

[Alec Davis]

Investment Info:

Single-family residence fix & flip investment in La Habra.

Purchase price: $240,000
Sale price: $295,000

A 1 bedroom 1 bathroom condo in La Habra.
For the most part it was a total gut job. Kitchen, bathroom (excluding bathtub), carpet & popcorn ceiling all had to go. For this investment, I decided to do most of the work ourselves (My Dad and I) for the experience. Shower tile, floor tile, splash, cabinets, paint we did ourselves while the laminate flooring, ceiling re texture, counter install were hired out. Did cheap minimal staging from IKEA, listed it myself, title in binder, etc.

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

I honestly wanted to invest so badly for quite some time. I had the knowledge, money to invest, mindset and people to get advice from but just wasn't pulling the trigger. I had a friend and former client one day tell me "Alec, hurry up and buy something". ( I should say, this person is a real estate investor as well ). I mentioned how expensive homes are, he mentioned investing in condos. It just clicked.

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

MLS. Searched for condos in what I was able to afford and stumbled across this beauty.
I negotiated the deal by accepting no commission for granting a lower price (totally worth it, commission would've been less than the discount I got. )

How did you finance this deal?

Conventional financing, surprisingly.

How did you add value to the deal?

Total rehab! Hard surface flooring, modern colors & feel, good materials.

What was the outcome?

Positive. The investment was profitable.

Lessons learned? Challenges?

Tons. Understanding how to properly outsource, how to deal with buyers (this was my first purchase, flip & listing).