Flipping the throwaway from a portfolio acquisition

[Todd Rasmussen]

Investment Info:

Single-family residence fix & flip investment in Oak Grove.

Purchase price: $73,000
Cash invested: $17,789
Sale price: $123,000

Contributors:
Elyse Rasmussen

Purchased property in significant flood zone as part of a portfolio deal. Completed minimal rehab and listed on MLS to get it off our books.

$73,000 Purchased (10% down interest only seller financing)
$10,488.96 for rehab and inspection based repairs
$2,473.31 holding costs
$35,537.26 proceeds from sale

$15,275 return on $20,262 cash in 4 months.
75% C on C over that time frame.

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

Found one property listed with a wholesaler, recognized it as being a part of a portfolio and inquired. Wholesaler got the whole portfolio and we offered

How did you finance this deal?

Combination of cash, commercial loan through local credit union and seller financing (after hard money fell through due to covid)

How did you add value to the deal?

Drywall repair, paint and flooring

What was the outcome?

Got a 6K annual flood insurance vampire off of my books before I had to refinance the seller financing to a bank and incur flood insurance costs.

Lessons learned? Challenges?

Stay persistent. We pursued this portfolio for two years prior to acquiring.

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

All of them, ask me.