Successfully Flipping During a Pandemic (almost $80K PROFIT)

[Tara S.]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $64,000
Cash invested: $35,000
Sale price: $186,500

Contributors:
Justin Sullivan

Flipping this house during a pandemic was not ideal but it was such a great deal on the front end it still worked out!
Here are the numbers! Purchased from a wholesaler for $64k (being a realtor I got $1,000 commission at closing too!)
Original Reno Budget-$42k
Original Time Line - 3 months
Actual Budget-$35k
Actual Time Line-7 months (Work stopped for 3months due to Covid-19)
Carrying Costs-$6000
Pending Price-$186,500
Realtor Costs-$5,162
Closing Costs-$2,000
Projected Gross Profit-$74,338

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

We knew as soon as we got to the property that this was a fantastic deal. We didn't even leave the driveway yet before calling the wholesaler and negotiating the deal. The condition of the house looked worse then it was & the numbers were just fantastic.

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

We found this deal through a wholesaler. He was originally asking $68,000 we offered him $60,000. He countered back at $64,000 and we accepted. Also with me being a realtor we got $1000 back at closing for my commission.

How did you finance this deal?

We paid $9,600 for the down payment cash. We used hard money for the balance & the renovations.

How did you add value to the deal?

We opened up the entire first floor to create an open concept.Beautiful new white cabinets, counters, vent hood, pot filler (its the details that count), floating shelves.We converted a 1/2 bath that was in the kitchen into a walk in pantry for extra storage. Upstairs we expanded the bathroom a foot to give it more space so we could completely update it. We built a custom vanity with vessel sinks & stylish tile shower & floor, same with the 2nd bathroom. We also installed a modern metal railing.

What was the outcome?

As soon as we listed the property we were over whelmed with interest. There were multiple offers the 1st day. We decided to wait a few days to gather all the offers and finish the showings that were scheduled. One of the offers was very persistent and didn't want us to wait to decide so they gave us their best & final and we accepted!

Lessons learned? Challenges?

The lessons we learned on this was was to watch over the guys working more & make sure when we hire subs that they are responsible for cleaning up all their trash and left over materials. We went through 3 dumpsters and ALOT of clean up because subs and workers were not cleaning up when they were finished.

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

Justin Sullivan - General Contractor
Tara Sullivan - Realtor
Justin Eaton - Dwell Safe Inspection & Engineering
Eileen Mazza - RCN - Hard Money Lender