3 bd, 1 ba cosmetic remodel in Creve Coeur, MO

[Benjamin Portnoy]

Investment Info:

Single-family residence fix & flip investment in St. Louis.

Purchase price: $120,000
Cash invested: $30,000
Sale price: $185,000

Purchased 3/1.5 from wholesaler. Updated kitchen and bathrooms, minor electric updates. Acted as general contractor and oversaw subs. This was my first deal, so I learned how to change out outlets and other minor electric work, as well as how to structure a deal and corresponding rehab from a mentor. I was a licensed real estate broker in Missouri at the time, so I handled the marketing and sale.

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

First deal as an investor/rehabber. Loved the process!

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

Through a local wholesaler who was also a mentor. We talked through evaluating comps, market conditions, how to list and market properties, etc.

How did you finance this deal?

Partner investor with an equity stake in the deal.

How did you add value to the deal?

Updated kitchen, bathrooms, outdated drop ceiling, flooring and more.

What was the outcome?

Sold for small profit. Great learning experience.

Lessons learned? Challenges?

I learned a lot through the process, especially how both houses and deals are put together. I also learned the value of hiring out as much as work as I can afford, both in the ability to scale and the time value of money.