Next flip - from 2/1 to 3/2 and more!

[Patrick Menefee]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $130,000
Cash invested: $65,000

This was formerly a 2 bed (unofficially 3 beds)/1 bath, 1137sqft house that will be converted to a 3/2 with 1214sqft, an open concept, and a beautiful new design!

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

I flip houses for a living 😁

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

Yard signs work! I met the former owners of this house while flipping the house next door; found out they were retiring to Florida, and bought the house!

How did you finance this deal?

Hard money

How did you add value to the deal?

The house was in decent condition but needed some help. We’ve opened up a wall between the living room and the kitchen, added an unfinished laundry room to the HLA, adjusted the layout to add a hallway and make the third bedroom official, converted the bedroom to a master suite by adding a bath, and did some extensive foundation repair

What was the outcome?

Getting ready to list it now, but projected to profit $35-45k and take 4 months from start to finish

Lessons learned? Challenges?

Every new flip seems to provide a new lesson in contractor management. This one is related to cleanliness and keys

Cleanliness: a couple of contractors left garbage and debris all over the job site. This led to the next contractor leaving even more, and a game of he said/she said followed. From here on out I’ll make sure contractors sign a cleaning addendum

Keys: one contractor kept the keys 3 times. Time to put an extra key on site

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

Freedom Capital Funding for hard money