Hard work paid off on a fire damaged property

[Phil Hucke]

Investment Info:

Single-family residence fix & flip investment in Springdale.

Purchase price: $26,500
Cash invested: $52,000
Sale price: $135,000

Fire damaged SFH in my neighborhood. I had $20,000 in personal savings to invest. To fund the project, I combined a HELOC on my personal home with a personal loan from my bank (PNC). I formed an LLC to hold the property during the project. My original intent was to BRRRR, however, it ended up making more sense to flip the property. I purchased the property for cash, as-is, then spent every evening and weekend for 9 months doing a full gut rehab on the place myself. I learned a ton about project management and where it makes sense to pay someone to do the work, and what makes sense to do myself. I got it on the market just as the COVID shutdowns were starting, and got an offer for list price in 24hrs. After paying off the 2 loans, taxes, commissions, etc, I'm clearing 47k profit. I also have my initial 20k investment back, for a total of 67k in cash and a lot of open credit ready for the next deal.

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

I've done enough work on other people's flips, it was time to do my own.

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

It was in my own neighborhood and I was able to deal with the owners in person. They initially wanted 60k, but we settled on 26.5k

How did you finance this deal?

Personal savings
Heloc
Personal loan

How did you add value to the deal?

Sweat equity!

What was the outcome?

177% profit on my own money, which looks awesome, but there is the loan payback and value of my time to consider.

Lessons learned? Challenges?

Don't hire friends, find good contractors, be patient, don't be scared!