Single-family residence fix & flip in Portsmouth, VA

[Anticia Whitehead]

Investment Info:

Single-family residence fix & flip investment in Portsmouth.

Purchase price: $66,000
Cash invested: $18,000
Sale price: $168,000

Purchased home that was vacated by the original owner. Solid, appreciating neighborhood but home was in need of full renovation. Had evidence of serious pest issues but the home had great bones and fantastic potential. We were able to significantly improve our margins by leveraging relationships to build a team of master subcontractors and acting as the general contractor. Rehab included new roof, full kitchen, flooring, central hvac, water heater, bathrooms, walls, paint, insulation and removal of several trees. Improved marketability and value by completing garage conversion resulting in a spacious master suite.

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

MLS deal and was able to work with seller's agents to negotiate the best offer

How did you finance this deal?

Hard money and cash

How did you add value to the deal?

Rehab included new roof, full kitchen, flooring, central hvac, upgraded electric and plumbing, water heater, bathrooms, walls, paint, insulation, tree removal and landscaping. Improved marketability and value by completing garage conversion resulting in a spacious master suite. Went from 3/1 to 4/2.

Lessons learned? Challenges?

Invested a lot of time and energy as general contractor. While this is a fantastic way to increase equity and closely manage every aspect of the job, it limits the number of deals that can be undertaken at any given time. The ultimate lesson learned is that we need to build a team that can offset some of the management responsibilities.