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Updated over 4 years ago,
Single Family Flip in South Huntsville, AL
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $49,500
Cash invested: $97,000
Sale price: $260,000
Single Family Home built in the 1960s. Was unfortunately a hoarder house, but able to purchase and retail flip in just over 90 days.
What made you interested in investing in this type of deal?
I own a construction company (am a licensed home builder), so bigger, more extensive rehabs do not pose any issue.
How did you find this deal and how did you negotiate it?
This was the family home of some mutual friends. I knew that they needed to get rid of the property, and they initially wanted me to rehab and then they would sell. I offered to purchase as-is, then did the rehab. This negotiation took about 3 months as they were very attached to the property. Because of the condition of the home, had a foundation company come out, as well as a home inspector, to give the family an idea of the issues with the property, and costs associated with the work needed.
How did you finance this deal?
JV cash purchase. Will use proceeds to retail flip another property that is already in progress.
How did you add value to the deal?
Created a 5th bedroom and added a shower to create a 3rd bathroom.
What was the outcome?
Just closed on the property.
Lessons learned? Challenges?
Be careful when you JV a deal, and it is not always best to partner. Communication is key, to be sure that you are on the same page as your partner, and always be prepared for timing to be extended.