2nd Flip, 40k profit

[Alexander Felice]

Investment Info:

Single-family residence fix & flip investment in Fayetteville.

Purchase price: $57,000
Cash invested: $30,000
Sale price: $145,000

Bought this house in Fayetteville NC from a wholesaler. It took longer than I had wanted because we closed right before Covid lockdown, but ultimately I made about ~40k in net profit while using only 20k of my own funds and being able to pay my money partner a very high return on his money.

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

Quit my job in 2019 and have basically no income and don't want to live solely off my rentals so I tried to flip a few houses for income

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

Found off market from a wholesaler. I paid 3k over what they were asking because I knew the area was hot and I needed a deal. I didn't care about maximizing spread I cared about closing the deal fast and securely.

How did you finance this deal?

A private friend I met through BiggerPockets networking gave me the bulk of the funds, the rest came from a HELOC.

How did you add value to the deal?

The house was in good shape mostly but it needed a new driveway, some trees cut down, a new roof, some deck and brick work out back.

What was the outcome?

House sold on the first day for 5k over asking price.

Lessons learned? Challenges?

I probably over improved this property and I spent too much time worrying about small details that ultimately didn't matter.