My First Flip Project

[David Mo]

Investment Info:

Condo fix & flip investment.

Purchase price: $35,000
Cash invested: $5,000
Sale price: $67,000

My first flip project! A wholesaler who is now a great friend brought the deal to me. We decided that he would bring the deal and I would work the rehab and split the profit and costs 50/50. I ended up doing the work myself and learned a lot of handyman skill in the process, but this flip took 2 months to complete when it could have taken 2/3 weeks with professional contractors, and I didn't end up saving much money because I had to buy my own tools! Next time we'll stick with contractors.

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

I wanted to break into the flipping business and the numbers on this deal allowed for a lot of room for error in case things went south.

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

This deal was brought to me by a wholesaler.

How did you finance this deal?

We both put in 5k and financed the remaining 25k through a hard money lender.

How did you add value to the deal?

Small things can make a huge difference. I gave the whole space a new paint job, added black fixtures, and installed new carpet.

What was the outcome?

We ran our numbers assuming a 65k sale price as the best case scenario. We ended up accepting a 75k conventional offer that appraised at 67. Still beat our expectations!

Lessons learned? Challenges?

Time is valuable. I spent 2 months fixing this place up due to lack of experience and not having an exact plan on how what to do first. I think next time if I do a project myself, I'll finish 1 thing at a time instead of working on multiple tasks at once. It may have cost slightly more to hire a contractor, but the peace of mind and extra time saved would have been 100% worth it.