Columbus OH First Flip!

[Austin Steed]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $70,500
Cash invested: $63,500
Sale price: $222,000

I raised capital and will share all profits with cash investor.Property was found off market and I managed all negotiations.
- Purchase price $70,500
- Rehab cost was budgeted for 40k but we ended up doing more to the property and spent 63.5k.
- ARV $205,000. Actual sale price was 222k
- Net Profit = $76,642

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

The proximity to where I live and the ARV %. This property was purchased for $70,500 and sold for $222,000

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

I am a local agent and I called them trying to list their house. They said that wanted a quick cash close. I raised the capital and called back with a cash offer 10k over what they were asking and we closed in 2 weeks.

How did you finance this deal?

A business partner and I purchased the property together. He provided the 70k for purchase price and since I found the deal we took 50/50 ownership of the property.

How did you add value to the deal?

We walked the property and pulled comps. Again this is where I live and I'm an agent. So I had a good understanding what the ARV would be.

What was the outcome?

My partner and I structured the deal where for ever dollar that was spent at the property we would get back. We both got all of our money bank and the left over profit on the SS was $76,642.00. So we each made 38k.

Lessons learned? Challenges?

Account for Utilities! This area is all electric and we did this flip during the winter. We spent over 1,000 on utility bills.

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

I am the agent. And my business partner manages over 120 SFH rentals.

[Austin Steed]

@Bill Goodland

For sure. Columbus OH is one of the hottest markets in the country or was. So if you're able to find the right deal its great to wear those seller pants.

And I think if we did it again I'd make sure to use one contractor for every MEP. I'm doing a much larger rehab now and I'm finding it very nice to use the same plumber, for example, for the rough and finish. One point of contact throughout the whole process. With this flip it seemed like we thought we'd finish the electrical and then we ran into other odd small problems. Like one of our light fixtures just stayed hot and didn't have a switch connected to it. We found it to be costly to get a guy out there for every little thing when in being sight you can hire just one main guys.