My First Flip - 1940s West Ashley Ranch

[Brooks Wharton]

Investment Info:

Single-family residence fix & flip investment in Charleston.

Purchase price: $270,000
Cash invested: $138,000
Sale price: $528,000

This flip property was my first and thankfully it was a huge success! The house was a 1940s ranch with an addition on the back that was properly completely in the 80s. The flip was extremely challenging - original plaster walls, original mud bed tile and lathe, heavy ciggarette residue throughout, complete bathroom framing and subfloor replacement needed, and a challenging layout. We finished the project with a beautiful 4 bedroom and 3 full bath and had an over asking price cash offer in 48 hours after listing it.

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

My experience in construction and my ability to be hands on.
Location/demand and opportunity for profit.

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

My fiancé's father brought us the deal. He is an agent and investor. We were able to get $5k off of the closing costs after some due diligence discoveries.

How did you finance this deal?

I paid the down payment and took out a mortgage. We had an investor pay the construction costs.

How did you add value to the deal?

I was able to run the project and be hands on.

What was the outcome?

The project took longer than expected and we spent more than expected! However, in the end it was a very successful venture.

Lessons learned? Challenges?

Lessons learned:
Delegate when and where you can. Our project when longer because I felt I needed to do everything and it became overwhelming. Lock in your selections early and be ready to make moves!
Challenges:
Older homes will require much more heavy lifting.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes...Roger Sample