Just Finished My First Flip

[Pamela Williams]

Investment Info:

Single-family residence fix & flip investment in Auburndale.

Purchase price: $195,000
Cash invested: $30,337
Sale price: $335,000

This was my first flip. The opportunity came to me when a customer of mine approached me with the idea of flipping this property. We ran the numbers and it looked feasible. After putting the offer on the property, we did a home inspection and it did not turn up any major issues. All cosmetic updates for the most part. I've heard disaster stories from first time flips so this went quite well by comparison. A few bumps and I learned a few things. Looking forward to the next project.

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

I had been wanting to jump into a flip for some time now but just hadn't got around to actually doing one myself. When the opportunity came to me and I saw the numbers made sense, I jumped in.

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

This was property on the MLS.

How did you finance this deal?

My partner paid cash for the property. We split the repairs 50/50 and will split profits 50/50.

How did you add value to the deal?

As a licensed Realtor, I have worked with many investors over the past few years and understood the flip process, numbers, etc. I also know what finishes buyers are looking for in my area. I was able to bring that knowledge to the deal to set/manage the budget and choose finishes that would sell the property. I also stage all of my vacant listings. Once the property was ready, I staged the property and had my photographer take the photos for the MLS listing.

What was the outcome?

We are currently listed. The property looks awesome. Tons of interest. I expect a full price offer on the property.

Lessons learned? Challenges?

The biggest lesson I learned is not to hire any family members. We hired my partner's son to paint and it took way longer than it should have and he used way more product than we should have.

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

I am a licensed Realtor.