My first Flip! 14703 Pleasant Oaks Cove

[Damon Cluck]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $65,000
Cash invested: $40,000

14703 Pleasant Oaks Cove, Mabelvale, AR is a single family home that contains 1,608 sq ft and was built in 1988. It contains 3 bedrooms and 2 bathrooms.

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

This is my first flip and I will use any profit to purchase additional Buy and Hold properties.

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

This was a bank owned foreclosure. It was listed for $60,000. After losing out on several recent REO's, I offered $5000 over asking and acquired it for $65,000.

How did you finance this deal?

I have a commercial line of credit through Arkansas Federal Credit union. They will fund up to 80% of ARV. I get the property under contract, and give them my Statement of Work and Renovation budget. The property appraised for $132,000 so they would loan up to 105,600. The terms are 6% amortized for 20 years, but a 5 year balloon.

How did you add value to the deal?

Home was structurally in good shape but was pretty beat up on the inside. Previous occupant had been in a wheel chair and had done a lot of damage to Sheetrock. It had a large addition on the rear that did not have HVAC. It had 1980's Masonite siding that was in very rough shape and aluminum windows. I replaced the roof, new vinyl

What was the outcome?

I am about to put it on the market for $138,000 which is the Zestimate. I am going to try it for 30 days as a FSBO and see what kid of traffic I get.

Lessons learned? Challenges?

REO's can be a challenge. The agent that had this one listed gets a lot of REOs in this area. Separate forms and a lot of special requirments. I had to use his closing agent and I had to have a representative from his office present for all inspections and to get the utilities turned on. It was extra work on my Agent to get everything in the format that they wanted.

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

Roane Ashmore at Arkansas Federal Credit Union is my loan officer. John Belden at Century 21 Prestige Realty is my Agent.