Our first fix and flip taught us a lot!

[Kurt Jones]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $120,000
Cash invested: $40,000
Sale price: $210,000

First fix and flip, learned so much and it paid off!

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

After buying and selling a few of our own homes over the years I always believed my wife and I could pull it off.

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

Found it through an investment realtor that I used before for a rental property.

How did you finance this deal?

Interest only loan, using a lien on my rental property. No money out of pocket!

How did you add value to the deal?

All new flooring in the entire house, laminate in main areas, tile in bathrooms, carpet in bedrooms. Full tile stand up shower in one bath, new tub and backsplash in other. New doors in several rooms, new door jambs and trim. Replaced attic door. Replaced exterior siding and trim. Leveled flooring in extension (was a step down). Replaced AC unit (unforeseen cost). Removed popcorn ceiling/re-textured. Shiplap added to a few walls. New base boards and window sills. Granite, new paint int/ext.

What was the outcome?

Humbling and enlightening! I was worried about making a profit worthy of all the time my family spent on fixing the house up to the point of listing the house. We never cut corners and fixed the house up as if we would want to live there. It paid off and within three days of listing we had 8 offers, 5 above listing price.

Lessons learned? Challenges?

Expect things to take longer than you plan. Unexpected costs/repairs are inevitable. Time is worth money.