Our First Fix and Flip

[Melanie Demastrie]

Investment Info:

Single-family residence fix & flip investment in Hollywood.

Purchase price: $235,000
Cash invested: $68,000
Sale price: $400,000

3 bdrm, 2 bath with a florida room that we finished as part of the house. 10,000 sq ft corner lot with an unfinished 2 car detached garage separate from the main house.

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

This was our first rehab property and we had two partners One was a real estate agent/process server friend of ours, and the other was a general contractor friend of his. We were going to split the profits three ways evenly.

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

Our realator friend found the listing and negotiated it.

What was the outcome?

The rehab took forever and a day for several reasons but mostly because our contractor/partner had spread himself so thin taking on too many projects at once. The work wasn't getting done quickly because his workers were working on so many houses, and more importantly, a good portion of what was getting done was not quality workmanship. This cost us extra money at the end (e.g. - the electrical work had to be redone in the kitchen when it didn't pass inspection amongst other mistakes).

Lessons learned? Challenges?

Too many to mention! But now we know.