My first ever flip in 2017 and what I'd do differently

[Michelle Maloney]

Investment Info:

Single-family residence fix & flip investment in Vermillion.

Purchase price: $140,000
Cash invested: $85,000
Sale price: $255,000

Massive remodel including removal of two walls to open up the property's main floor. I replaced two and a half baths, all the windows, flooring and roof. After the holding costs from my traditional lender, it wasn't a money maker at all, but I learned a TON.

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

I'd always wanted to try flipping and the location was phenomenal.

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

The seller called me to her house to list it (I thought), but when I got there to give her the value she told me she wanted me to buy it. I worked backward with her on the costs I thought it would take to sell at top of the market value.

How did you finance this deal?

My local lender.

How did you add value to the deal?

I was able to pivot based on what we found as we started construction and I had a good lender willing to give me more money when I needed it. Knowing the subs helped a lot.

What was the outcome?

It sold fairly quickly after it was finally done. My painter quit mid job to do a new construction so that delayed me a month.

Lessons learned? Challenges?

Remember you are NOT the one living there, so don't over improve. I stupidly did level 2 granite because it was unique - cost me an extra $2500. Always have a backup plan. My painter quitting cost me a month of holding costs and the new guy wasn't as good but I had no time to check references.

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

Me :)