Single-family residence fix & flip investment

[Brian Joseph OConnor]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $135,000

Under contract 2/15/21. Will update as the process moves through due diligence, closing, rehab, sale!

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

My wife and I have bought into the idea of real estate investing for the long term wealth generation over time so our ultimate niche will be buy, hold, fix and rent. Hopefully we can figure out and execute BRRRR strategy sometimes in order to scale faster. We chose to get our feet wet with the goal of successfully completing 2 flips in 2021 and this is the first deal I found that met our criteria and the math worked!

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

found the deal by living on zillow every day for a month and practicing fix & flip, and BRRRR analysis 5 per day for a month so I was ready to take action when the deal appeared. i found the property 8 hours after it listed on zillow so we beat the vultures to the carcass.

How did you finance this deal?

hard money for 90% of purchase price and 100% of rehab cost.

How did you add value to the deal?

Plan is cosmetic renovation: new kitchen, bathrooms, flooring, doors, windows and fixtures. New exterior paint, gutters, landscaping and carport. Roof looks ok. HVAC is ok.

What was the outcome?

TBA

Lessons learned? Challenges?

So far:
1) deals can be found on MLS in a hot market if you are willing to spend the time hunting and you are ready to act quickly
2) in a hot market, if the math works, offer asking price, get it locked down under contract and use the due diligence time to figure out if you need to ask for a lower selling price.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes. i found a great real estate company that is super investor friendly!! my specific agent is an investor himself. Let me get further into this deal before I make any recommendations.