Easy Flip in Summerville, SC

[Andrew Merritt]

Investment Info:

Single-family residence fix & flip investment in Summerville.

Purchase price: $50,000
Cash invested: $10,000
Sale price: $130,000

found a fire-damaged house that needed a full gut. All we ended up doing was cleaning out the debris from the fire and taking it down to the studs. We were planning on doing a full renovation but my agent wanted to see what would happen if we put it on the market as-is after the cleanup. Listed it for $125k and got $5k over asking price and we couldn't turn that down. There is still plenty of profit left for the rehabber who bought it as well, so everybody won on this one.

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

I've been wanting to get into flipping for a while to speed up the process of buying rentals. This was a lot more daunting than I would have liked for my first flip but it was a good price.

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

My Realtor found it. Asking price was $50k so we offered $45k. They weren't willing to budge and it was a good enough price so we went with it.

How did you finance this deal?

Cash

How did you add value to the deal?

All we really did was clean out the debris from the fire.

What was the outcome?

After cleaning out and tearing down to the studs, we were able to find another investor to buy it as-is

Lessons learned? Challenges?

I had ever done a flip before so the lack of experience cost us time and money. We thought we would need full drawings for the rehab so we hired an engineer and drafter. The drafter (and all others in the area) were backlogged by about 6 weeks so pretty much nothing got done in that period of time. I believe this was also unnecessary step. We also cheaped out on the demolition/cleanup crew. They were supposed to finish up in 3 days but ended up taking 3+ weeks and caused a l

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

I would highly recommend my Realtor. Send me a private message if you would like his contact info.