Investment Info:
Single-family residence fix & flip investment in Broken Arrow.
Finishing up a 2000+ square foot remodel in Broken Arrow. Has a new roof, new HVAC, flooring, and Granite counters.
What made you interested in investing in this type of deal?
I have had Previous investments in the region/surrounding cities. Purchased the property undervalued with needed updating. Rental rates in this area are strong as well as resale values compared to purchase. This property gave me multiple options to be able to either flip with a great return or rent with cashflow and equity.
How did you find this deal and how did you negotiate it?
I purchased another property from a couple that needed to stay and rent from me while looking for a property for their primary residence. So I bought their house as is and at a discount and rented it back to them in the mean time while they ended up building. They contacted me about 3 months later and their uncle needed a net amount to move to assisted living with the sale of his home so I wrote up the contract with them netting the needed funds for the property.
How did you finance this deal?
Personal financed
How did you add value to the deal?
Updated paint counters exterior, interior, and cabinets. Replaced the roof that was needed replaced the HVAC that was working but older, and replaced boards around the house that needed it. New flooring throughout new countertops raised the bathroom counters to be at new standard heights and dropped the kitchen countertops for an updated look.
What was the outcome?
Stayed under budget and rental returns are at the 1% rule with 0% equity for possible cash out refinance.
Lessons learned? Challenges?
first remodel over 2000 sf. Be flexible with the materials when there is a shortage of supplies during the pandemic
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Bought without an agent. Contracted it myself but used my property manager to help evaluate the rental rates prior to purchasing
