Investment Info:
Single-family residence fix & flip investment.
Purchase price: $48,369
Cash invested: $33,685
Sale price: $123,900
This was my first fix and flip, and I made well over my 40% ROI goal, making a 68% profit. If I had done this over again, I probably would have held onto the property for a long-term investment as this home was in a great community. I was very proud and excited about how the home finished and wanted to show it off and receive the cash in hand. It was a fantastic learning experience. The house sold again for $140,000 in Oct 2019.
What made you interested in investing in this type of deal?
It was within my price range and community. I knew this home needed a lot of work, and many other investors turned away from it, which led it to drop into my price range.
How did you find this deal and how did you negotiate it?
I am a Real estate Broker in Illinois.
How did you finance this deal?
Cash to buy and cash and credit cards for repairs.
How did you add value to the deal?
Being a Realtor, I knew where the potential of the resale could be my husband is in the HVAC and construction field, and he had an idea of the repair cost. It was a learning experience for my husband, and I learned to plan for unexpected repairs.
What was the outcome?
60%+ in ROI. I was very pleased considering this was my 1st flip.
Lessons learned? Challenges?
Do not let your emotions of your proud work blind you from a more profitable long-term goal. I was excited to show my flip off to other realtors and the community resulting in my selling the home too soon.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No, I am a Realtor and I use my own cash.
