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

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.

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

The house was in a neighborhood I used to live in, so I knew the comps.

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

On the MLS. Listed for $132,000 and we made a $90,000 no contingencies offer the first day, and after some back and forth they accepted the $90,000. It was an estate sale.

How did you finance this deal?

A private money lender. He has funded several deals so far and he takes a hefty cut, but the cash offer was the only reason we could get the property in the first place so it was worth it!

How did you add value to the deal?

Put $52,000 into renovations and a lot of work ourselves. Tile showers, floors, etc.

Lessons learned? Challenges?

We had it under contract to sale the first day after we listed the flip, but down the road the appraisal came back super low. We wanted to do a rebuttal and argue the appraisal, but buyer didn't want to do that and so they backed out of the deal. We were bummed at first, but we put the house back on the market and had multiple offers and got a great new contract that closed in less than 30 days.