Fix and flip deal in Baltimore City

[Joseph Leibovitch]

Investment Info:

Townhouse fix & flip investment.

Purchase price: $38,000
Cash invested: $65,000
Sale price: $139,500

Bank owned forclosure in Baltimore City

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

The low price drove to invest. I was able to add sufficient value and still keep the price affordable. We ended up selling it to the second person that looked at the house.

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

Auction

How did you finance this deal?

Investors funded the initial purchase. Once we owned the property we split the cost of the rehab.

How did you add value to the deal?

We did a full rehab on all the floors. We changed the layout of the kitchen giving it a more open feel. We fixed the plumping and electric. We also added some extras like a Jacuzzi style bath in the master bathroom. granite and new cabinets in the kitchen. An island with a sit down area. we put a brand new roof on it. Basically making the house look completely new on the inside.

Lessons learned? Challenges?

I learned about estimates for the labor.