First Property For More House Realty

[John Williams]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $175,000
Cash invested: $70,802
Sale price: $280,000

Fix and Flip, of a 3 bedrooms, 2 bathrooms 1,090 sq. ft. rambler into a 4 bedrooms, 3 bathrooms, 2,180 sq. ft. home with a fully finished walkout basement with 9ft ceilings. The upgrades include hard wood flooring, stainless steel appliances, fresh paint and new carpet. Added a 3rd bathroom, 4th bedroom, and an entertainment area in basement.

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

I was over anxious to get a deal going so I jumped on this deal a little too aggressively. I was interested in getting my first flip under my belt.

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

Chelsea Guy a real estate agent found this property. One of the many lessons l learned with this first project was stick to the numbers. I was over anxious and wanted to get a property so bad I failed to negotiate. I took the property at the offered price. I was probably a little over the actual ARV based on the upgrades we were adding. I should have Offered a lower priced based on the actual ARV and negotiated to a better, lower deal.

How did you finance this deal?

I financed this deal with a non-conventional loan from a private lender

How did you add value to the deal?

Finished the walkout basement with 9ft ceilings. Upgraded to hard wood flooring, stainless steel appliances, fresh paint and new carpet. I also added a 3rd bathroom, 4th bedroom, and an entertainment area in basement.

What was the outcome?

I secured the property in November 2019. Completed the rehab in January 2020, just before the COVID 19 pandemic swept over the area. The property stayed on the market for approximately 6 months and sold below the original asking price.

Lessons learned? Challenges?

Lessons Learned: Don't get so anxious you overlook the numbers. Avoid over rehabbing. Price the home correctly. Negotiate the price based on the numbers. Communicate your desired outcome clearly in a statement of work and stick to it. The biggest challenge on this project was a big hill in front yard. My general contractor extended the drive way beyond it Original point. The big dip in the drive way was like the dip on a roller coaster and it was a deal breaker for potential buyers.

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

Worked with Chelsea Guy of Keller Williams, PA Porter Investment, Porter and Porter Floors, and an a good loan guy.