Investment Info:
Single-family residence fix & flip investment.
Purchase price: $399,000
Cash invested: $66,000
Sale price: $699,000
This place had great bones and so much wood detail that had been neglected over the past few years. The property sits on almost 4 acres and has 4 bedrooms and 4 bathrooms. Square footage was 3,740 and every room needed work. This was a great find by a realtor that looks at for flip residential properties and we took full advantage of the opportunity. There was a lot of sweat equity and hard work that went into this project.
What made you interested in investing in this type of deal?
Fix and flips regarding larger single-family homes are huge opportunities in my eyes. This house had great bones and needed deep cleaning to get it back in livable condition.
How did you find this deal and how did you negotiate it?
Realtor found this deal, as it was court-ordered. Was told about it, looked at the property, then put a contract on it within a 3 hour window. It was the best flip profit-wise I have ever invested into.
How did you finance this deal?
Local banker that I had worked with on past deals financed the deal on 80% loan terms with 20% down. The interest rate was 5.3% and amortization was over 20 years. We locked in that rate for 60 months.
How did you add value to the deal?
Cleaned up the property, all new plumbing, painted every wall, new carpet in bedrooms, upgraded lights, all new tubs and a toilet in bathrooms were the main value additions. We also added landscaping, took down a deck and above ground pool, and also installed new cook top.
What was the outcome?
The property increased in value and we have it under contract. The whole community around there was very pleased that it had been restored.
Lessons learned? Challenges?
Hire a general contractor and let him handle all the subcontractors and jobs he can.
