Fix & Flip Success in Opelika, AL #2!

[Jake Roland]

Investment Info:

Single-family residence fix & flip investment in Opelika.

Purchase price: $90,000
Cash invested: $52,000
Sale price: $235,000

Found on the MLS and low balled the first day on market and got it under contract. Bought for $90,000 with a partner and put $52,000 (and a lot of work ourselves) into renovations in 3 months, sold for $235,000. Bought using a private money lender for the purchase price, and split the renovations between me and the partner.

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

Found this deal on the MLS, listed for $132,000. We saw it and visually inspected it the first day on market and put in a no contingencies offer (no inspection, no appraisal, cash) immediately for $90,000. After a little back and forth, the sellers accepted our $90,000 offer and we closed in three weeks. It was an estate sale.

How did you finance this deal?

A private money lender my partner and I have developed a relationship with has funded several deals so far, he takes a hefty cut, but making the offer cash was the only reason we were able to secure the property in the first place.

How did you add value to the deal?

Put $52,000 in renovations and did a good bit of the work ourselves.

Lessons learned? Challenges?

When we were selling it, it went under contract the first day on market, and we got further into the deal and the appraisal came in super low. We tried to do a rebuttal but the buyer didn't want to do that. We were kind of bummed but we ended up putting it back on the market and got multiple offers and got a great deal with a buyer who closed in less than 30 days through the holidays as well. Appraisal came in right on target the second time.