Fix & Flip - working

[Everett S.]

Investment Info:

Single-family residence fix & flip investment in Columbus.

Purchase price: $74,000
Cash invested: $50,000

We'll fix this property up to renter grade (mid-tier finishes). Due to complete in 3mos. We'll market property to investors as "cash-flow ready".

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

Location, who we were buying this from and the need for working capital. This is a few blocks outside of the very popular Franklinton area. Home values are increasing daily on this street and neighboring streets due to the influx of rehabs in Franklinton. We're using a trustworthy wholesaler who is doing all the heavy lifting for us. We're in need of capital for vacant lots acquisitions.

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

Local wholesaler - we decided to make an offer at asking due to the interest in the area. The property has some features other homes don't in the area. I.e. 1/4 acre lot and 2-car garage. It will allow for us to maximize our asking when we flip it.

How did you finance this deal?

We are using private money + 10% down. It doesn't make sense to use hard money at a higher interest rate and have holding cost due while rehabbing. We want to come out of pocket as little during construction and worry about paying when complete. We factored that into the deal and can still come out with a 25% profit margin/$40K profit.

How did you add value to the deal?

We're upgrading mechanics, paint, porch, windows, siding, 2021 finishes throughout the property - new fencing as well.

What was the outcome?

To be continued...

Lessons learned? Challenges?

To be continued...