Investment Info:
Single-family residence fix & flip investment in Clinton.
Purchase price: $135,000
Cash invested: $95,000
Sale price: $345,000
Replaced all systems (HVAC, Plumbing, Electrical) and then added fresh flooring, paint and opened the floorplan. We also replaced the roof and windows.
What made you interested in investing in this type of deal?
Started out as a potential seller. Unfortunately, the seller was hoarding, and unable to keep up with regular maintenance.
How did you find this deal and how did you negotiate it?
A friend referred the seller to me. Using our contractor, we presented the numbers to renovate and the anticipated timeline, as well as additional costs of selling. The seller opted for the quicker method.
How did you finance this deal?
We utilized both personal savings and hard money.
How did you add value to the deal?
We created an open floorplan and all major systems were new.
What was the outcome?
The renovations took a little longer than anticipated, and unseasonal snowfall delayed the sale a bit. Negotiations were quick and the new family was happy.
Lessons learned? Challenges?
Let the contractor do their job. We attempted to find more affordable vendors in some cases, and that was a waste of time. I did handle all of the permitting myself, which was a decent way to save some money, but it may not always be the best value.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am a real estate team leader, a team member listed it for me.
