First Investment Fix and Flip

[Taylor Moody]

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Lexington.

Purchase price: $83,000
Cash invested: $25,000
Sale price: $127,000

First Flip, partnered with another investor who set me up with the hard money lender. Purached from new wholesaler. Used contactor for 90% of the work, did some myself. Good lesson Learned, let the contractors do all the work, and focus on being a good investor. Rehab took 8 weeks, way too long, but we did profit!

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

I had been talking with some investors about how to get started, they told me doing a flip was a good way to get my "feet wet" and make a little money.

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

Wholesaler, he posted it on an investor Facebook page, it was his first wholesale. I did negotiate the price down from 87k to 83k.

How did you finance this deal?

Hard money lender, had to split the deal with another investor to get the financing to work and build a relationship with the lender.

How did you add value to the deal?

The home needed a complete update and clean up. We removed cabinets over the island and a non-load-bearing wall to open up the main room. Painted the cabinets and new appliances, all new bedroom doors. Then we did new carpet for the rooms and hallways and put the LVP in the den kitchen and bathroom area. Installed an HVAC system and new ductwork.

What was the outcome?

We got a ton of offers over asking, but I wish I could go back and keep it as a rental, it would have been perfect

Lessons learned? Challenges?

Covid started in the middle of our renovation that was tough.
I learned to let the contractors do what they do and to focus my time on being an investor.
I overdid the renovation and got 5k over budget, so make a better budget.
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Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Tisha Monte with the Brokerage in Lexington KY. She helped me from A-Z, finding comps when buying from wholesalers, renovation color, and design selections, and selling it.