Bronx, City Island fix and flip in NY

[Ceasar Rosas]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $238,000
Cash invested: $172,000
Sale price: $650,000

Contributors:
Thomas Cardona

This home was a fully gutted 3 bedroom with 2 and a half bathroom and finished basement. It was a fire damaged, hoarder house when we first laid eyes on it. Exterior is brick and it was semi attached.

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

I love doing flips. This was an opportunity to take a fire damaged hoarder house and turn it into a gem.

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

It was actually wholesaled to us by someone in our network from the meetups we started in the Bronx.

How did you finance this deal?

We financed this through Hard Money at 10% Down with 9% interest only and 1.5% points at closing.

How did you add value to the deal?

We gut renovated this house's interior, re-did the roof, and replaced all the windows.

What was the outcome?

After 10 months we made a $150,000 profit on this house.

Lessons learned? Challenges?

We needed to get our permits in order before touching the place. We started demo before all permits were ready and plans were done. This caused neighbors to complain and we were shut down with a stop work order for about 4 months. Which cost us about $20k in holding costs and violations.

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

I was the real estate agent on the deal. Sold it for top dollar with multiple offers in the 1st week.