First Flip in the books!

[Kyle Kline]

Investment Info:

Single-family residence fix & flip investment in Southern Pines.

Purchase price: $155,000
Cash invested: $85,000
Sale price: $335,000

This deal is a great example of how to pivot and have multiple exit strategies. We bought this as a BRRRR project and to utilize it as a STR but we found a 10 unit apartment complex that met our long term goals better and pivoted to selling this project to fund the renovations and purchase of the newly acquired apartment complex.

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

This was the perfect example of, "get it under contract and figure out the funding after" deal you hear about. Someone approached one of our BRRRR properties and asked if we wanted to buy their property. me knowing I have zero cash to purchase anything as a new investor, "why yes, yes I will buy your house!" ended up getting in under contract and figuring it out from there.

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

I found this deal off market through a local Estate Attorney that walks buy a BRRRR we were working on at the time every day for lunch.

How did you finance this deal?

I utlized a Hard money loan for the initial purchase, and then private money for the rehab costs.

How did you add value to the deal?

We added a master ensuite which increased the bed count to 3 and bath count to 2.

What was the outcome?

The outcome was ALOT of hard costly lessons learned via hiring the cheap contractor that we trusted that quickly got in over his head but continued to give him another chance over and over again.
Luckily, we bought at a great time and still made a great profit when we sold it.

Lessons learned? Challenges?

If you think you need to let someone go on your team its probably been in your subconscious long before and you need to rip the bandaid off and do it and go from there.