First Flip - Lots of Lessons Learned

[Christina Fleck]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $70,000
Cash invested: $75,644
Sale price: $177,000

BEAUTIFUL BRICK RANCH, RENOVATED FROM THE STUDS! 3 BEDS/2 BATHS IN A THE GREAT BRIDGE SCHOOL DISTRICT. NEW WINDOWS, NEW ROOF, NEW A/C. LARGE LOT, OPEN CONCEPT FLOOR PLAN, GRANITE IN KITCHEN AND BATHS, AND A SPACIOUS MASTER SUITE ON ITS OWN WING OF THE HOUSE. THIRD BEDROOM COULD BE USED AS A RENTAL, WITH ITS OWN PRIVATE ENTRANCE.

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

We were looking to do our very first deal.

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

It was an estate sale on the MLS.

How did you finance this deal?

We used a 203k rehab loan.

How did you add value to the deal?

We improved on the layout and upgraded all the major things...roof, kitchen, bathrooms, created a laundry room.

What was the outcome?

We only netted around $4000 after 8 months of work.

Lessons learned? Challenges?

We learned not to do a 203k rehab loan. The finance and holding costs were too high. We also learned to know our numbers really well before offering.

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

I am a licensed real estate agent, so I facilitated the acquisition and sale.