Raccoon House in Louisiana Fix and Flip

[Marian L Claville]

Investment Info:

Single-family residence fix & flip investment in Shreveport.

Purchase price: $50,000
Cash invested: $38,375
Sale price: $127,000

This was not one of our better flips. We thought it would only need $28,000 of rehab but we quickly discovered raccoons had invested the attic and pest control charges per raccoon. After getting rid of the tribe and reblowing installation we were out of an additional $10,000 and it appraised for $10k lower than we listed for. We know now to have a detailed inspection before we purchase.

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

It was in a great area with a huge yard. We didn't think the rehab would be that much.

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

I am a realtor so I saw it on an auction website.

How did you finance this deal?

We had flipped two homes previously so we used some of the cash for the downpayment and financed the rest.

How did you add value to the deal?

We completely rehabbed the whole home.

What was the outcome?

It sold but for less than we thought.

Lessons learned? Challenges?

Get a detailed inspection and get a detailed contract with the contractor.

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

I am an agent who is a real estate investment strategist and purchased home from homepath.com.