Fix and Flip Success! 28% margin $32,717 profit

[Cassidy Burns]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $61,950
Cash invested: $61,950
Sale price: $148,100

Fix and Flip Project:
-3 bed/ 2 bath
-Basement
-Purchase Price: $61,950 (Online auction)
-Appraised Value: $124,000
-Rehab Budget: $28, 497(Labor, HVAC, new water heater, paint throughout, new counter tops, appliance package, 2 light bathroom Renos)
-Holding Costs: $1,500.86
-List Price: $145,000
-Outsell: $148,100
-Realtor Fees: $8,886

All In: $115,382
Outsell: $148,100

Total Profit: $32,717

Went a little over budget, project took longer than expected, but ended up selling for $15,000 more than we anticipated! Great project.

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

Great margin!

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

Foreclosure, submitted lower offer, took around 2 months to get ratified.

How did you finance this deal?

2 Investors funded the entire project. They received a 17.7% IRR on the project

How did you add value to the deal?

Purchase: $61,950
Appraised when we bought: $124,000

$29,000 Rehab

Sold for $148,100

What was the outcome?

28% Margin
$32,717 profit

Great project

Lessons learned? Challenges?

Had to fire 2 contractors
COVID put us 3 weeks behind schedule
LOCATION LOCATION LOCATION

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

Yes, Lisa Brown from Highlands Realty out of Clifton Forge, VA. She did great.