Second Fix and Flip! Phoenix, AZ

[Chris Risi]

Investment Info:

Single-family residence fix & flip investment in Phoenix.

Purchase price: $189,000
Cash invested: $35,000
Sale price: $293,000

This was a wholesale property that I found from an email list I'm on. I was EXTREMELY hands-on with this one and had a lot of sweat equity in fixing the place. This was one that I managed 100% on my own, and thanksfully found a hands-off investor who believed in the deal.

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

It was my second fixer project. My goal and strategy has been to do a few of these to try to build up a bit of cash to start investing more in rentals.

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

This was a cash wholesale deal that was sent out on email to me from a wholesaler in AZ. There was no negotiating on this one. Just a "buy it now" price.

How did you finance this deal?

Partnered with a cash investor.

How did you add value to the deal?

I added value by remodeling the whole place. I didn't need to add square footage with this one. I was able to buy it low enough that a cosmetic fix would still work financially. I also added value by doing a lot of the work myself with a family member. This way I was able to keep the budget extremely lean.

What was the outcome?

I learned a lot more about budgeting and construction because I was "in the trenches" with this one. I was able to make a good enough return on this one, and was able to be pretty accurate with rehab costs and ARV.

Lessons learned? Challenges?

The main lesson learned on this one is how much an ugly neighboring house can hurt the value of a project. If I hadn't had an ugly neighboring house, the sale would have been much faster and purchase price higher.