My first flip - Harrison, AR

[Christian Beachy]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $24,250
Cash invested: $48,900
Sale price: $68,900

This was my first flip - a 2BR/1BA 888 sq ft just outside of town. I am thankful for the agent we worked with, Matt Fay, who guided us to this property as a good investment.
I partnered with my Dad - he provided about 85% of the capital and I provided 15%. We agreed to split the profit. Then we worked together on remodeling the house. We stripped it down to the studs, except for one room. Pretty much a new house except for the roof.
75% of the floor joists replaced
New vinyl siding
New vinyl windows
New wiring and box
New plumbing to the street
New HVAC
Mostly new drywall
New flooring
New bathroom
New kitchen

My dad suggested that my wife and I live in the house since we were looking for a place to live, so we took him up on that. We ended up living in the house for over a year before selling. We made about $20,000 on the house, and split the profit.

What was the outcome?

We made a profit, and didn’t lose money on our first flip.

Lessons learned? Challenges?

Definitely learned to check out what all is wrong with a property before buying. Knew it needed a lot, but it ended up being more than I thought! I also really learned a lot about remodeling. That carried on to my next flip.

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

Matt Fay with FIG Realty in Harrison, AR