1st Flip - Deanwood Rowhome (Washington DC)

[Brian Beck]

Investment Info:

Single Family Rowhome Flip in the Deanwood Section of Washington DC

Purchase price: $200,000
Cash invested: $91,000
Sale price: $400,000

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

Worked for a flip investor in 2011-2012 as a project manager and I have a construction background

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

I found it via my partner (set this up as a joint venture) on the MLS. We put in a full-price offer of $250K, the financing however fell through as we put it under contract right before Covid Lockdowns became a thing and lost the original financing due to Covid, we renegotiated to $200K as the owner has already had two contract prior to ours fall through. This allowed us to secure new financing to close the deal.

How did you finance this deal?

Hard Money Lender

How did you add value to the deal?

Remodeled, Added Bedroom, Full Bath and Half Bath to make it a 3/2.5 (previously a 2/1.5)

What was the outcome?

1st Day Full Price Offer that closed on time.  Became a very profitable job.

Lessons learned? Challenges?

Covid was a huge challenge in multiple ways, at first it almost blew up the deal before we even got to closing with the financing issues.   The DC permit office took a little longer than normal as a result of new procedures due to the Covid lockdowns, our general contractor passed away from Covid during the repairs. Almost forgot, it was broken into the night of we closed on it, nothing came of it luckily but just add that to the list.  It was quite a bit to handle for the first one, but I am glad we went thru it and looking to move along to the next one.

Before:

After: