My First Profitable Fix and Flip in St. Louis MO

[David Ounanian]

Investment Info:

Single-family residence fix & flip investment in St. Louis.

Purchase price: $82,000
Cash invested: $23,000
Sale price: $142,000

This was my first profitable fix and flip in St. Louis. It was an easy cosmetic flip that didn't need a lot of major work done.

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

I was interested in doing this deal because of the low amount of risk involved. It was a lower price point and it didn't need a big rehab.

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

I found this deal through a real estate agent. This was an off market listing (pre-mls). I negotiated the price with the agent and had to beat out a few other offers from other investors.

How did you finance this deal?

I used a local commercial bank to finance the purchase and rehab of this property. They financed 80% of the purchase price and 100% of the rehab. I used a HELOC to cover the 20% down payment and effectively used $0 out of pocket funds to do this deal.

How did you add value to the deal?

I updated the kitchen, bathrooms and did new paint and flooring throughout the house.

What was the outcome?

The outcome was very successful. It sold the first weekend on the market and all parties were happy!

Lessons learned? Challenges?

One lesson I learned was how much better a home looks with staging. We spent about $1800 staging the home and it made the home look so much more inviting. I continue to stage any property I flip.

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

I'd highly recommend my lender at Midwest BankCentre and happy to make an introduction to anyone who needs one.

[Fi Scope]

Congratulations!  What kind of loan did you obtain and what made you choose that product?