Texas Fix and Flip near Fort Worth

[Nancy Nakamura]

Investment Info:

Single-family residence fix & flip investment in Burleson.

We invested in our first flip in June 2020 and it took us 3 months to complete. My awesome husband owns a custom cabinet business and did 80% of all the work ourselves (sweat equity). We learned a lot through this process. Some mistakes we made:

-All cash offer with NO option period. We learned after the purchase that the house had plumbing and electrical issues. The city got involved and we needed to bring everything to code. Because of this we gained a wealth of knowledge in what is required. We ended up with foundation issues, disintegrated cast iron, aluminum wiring that needed to be replaced with copper wiring, blowing insulation into the attic, sheetrock repair. We basically took the house down to the studs. In the end we did okay. Because this was such a hot market we entered into contract with a buyer while the house was down to the studs! It turned out okay but due to the major issues, we didn't make as much as we hoped.

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

Always been a dream of ours to flip a home.

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

Found it on the MLS. Cash offer

How did you finance this deal?

HELOC

How did you add value to the deal?

Completely updated the house and added custom cabinets to kitchen, custom vanities in bathroom. Changed footprint of the house and turned a 32"x32" shower in master bath to dual shower with 2 shower heads. Moved AC to attic to enlarge shower space.

What was the outcome?

We e texted into contract with a buyer while the house was down to the studs.

Lessons learned? Challenges?

Make sure you know what you are buying. Key things like foundation, electrical and plumbing can potentially ruin a transaction.