First Flip Deal in Cleveland

[Kyle Skinner]

Investment Info:

Single-family residence fix & flip investment in Cleveland.

Purchase price: $40,000
Cash invested: $80,000
Sale price: $329,900

Full gut fix and flip in the Tremont neighborhood. Sold 3 days after listing for full asking. Was able to complete all of the work ourselves saving tens of thousands of dollars but adding extra time.

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

After running a construction company I was getting burnt out. I was able to partner up with two friends that also have construction experience and invest into this deal.

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

The house was listed on the MLS for 60k. We offered 30k and negotiated to meet at 40k.

How did you finance this deal?

Cash

How did you add value to the deal?

This house was steps away from being condemned when we purchased it. We completely gutted the house and replaced everything. The only existing things in the property are the foundation and exterior walls. Both were repaired during the construction process.

What was the outcome?

The property sold a couple days after listing and we grossed $209k prior to taxes and realtor fee's.

Lessons learned? Challenges?

Dealing with the city of Cleveland Building department trying to get plans approved was absolutely horrific. Start early and be persistent with calling them because they will get nothing accomplished quickly.