1st New Construction Flip

[Shana Jackson]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $25,000
Cash invested: $150,000
Sale price: $449,000

Purchased property for 25k in 2015. Initially purchasing as a rehab property for our daughter to live when she went off to college. Since it was a duplex, she'd live in one side and we'd rent out the other. Life happened, plus we manage approximately 20 other rental properties, and we forgot about our "little" investment. In 2017, we received a flyer asking to purchase the property for 125k. We jumped in the car to see what had changed in the area....

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

We purchased for such a great price that we were able to throw more money towards the project, plus, we wanted to set the tone for the area with the first new construction flip.

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

Found the deal through a Realtor.

How did you finance this deal?

Initial cash investment. Used proceeds from another rehab to fund this property.

How did you add value to the deal?

The value is what we brought to the neighborhood. Not only did we demolish an eyesore property within the community, we rebuilt a home that paid homage to the neighborhood.

What was the outcome?

Under contact in under 4 days. Sold for $900 less than asking price.

Lessons learned? Challenges?

Staging matters (I knew this, but hubby wasn't sold)

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

I'm a Realtor, investor, landlord!