Woodward Homes Flip in Mt Holly

[Thomas Magill]

Investment Info:

Single-family residence fix & flip investment in Mt Holly.

Purchase price: $60,000
Cash invested: $110,000
Sale price: $176,000

This was a full gut renovation. In addition to removing the interiors, we raised the ceilings from 7'-4" to 10'-6" in the common areas. When we purchased this property it was a 1100 sf with 2 bd, 1 bth. We converted it to a 3 bd 2 bth and relocated a bedroom to create an open floor plan with a distinct separation between public and private areas.

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

I loved the location of this property and purchased it right when the pandemic was in full swing. A lot of investors stopped buying and this property fell out of contract. We picked it up at a discount.

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

We purchased this property from a wholesaler.

How did you finance this deal?

We purchased the property with investor funds and funded the construction out of pocket.

How did you add value to the deal?

We added a bedroom and bathroom, reconfigured the floor plan to create a separation between public and private, and hired an engineer to calculate if we could raise the ceiling 3 ft.

What was the outcome?

The property went under contract for purchase in 2 days. It will close in the beginning of August.

Lessons learned? Challenges?

I lucked out and hired a great contractor. The success of this project is mostly attributable to him and his team.

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

I worked with the buying agent, but I got my real estate license early on so I could sell properties myself. I have been working with an amazing private money lender for the past year. He makes the purchasing phase very easy.