Investment Info:
Townhouse fix & flip investment.
Purchase price: $140,000
Cash invested: $210,000
Sale price: $302,000
Revitalized a challenging 4-bedroom townhouse plagued by extreme distress, pet-related issues, and a no-rental policy. Opted for a fix-and-flip approach, investing 3.5 months in labor, which resulted in a substantial return. The project involved a full rehab, including landscaping and exterior garage improvements.
What made you interested in investing in this type of deal?
The numbers made sense; it was very obvious this project would yield a high return. Notably, we found this off-market before any other investors. The risk was that the association does not allow rentals; therefore, we knew no matter what, we had to be able to sell the unit once the rehab was complete.
How did you find this deal and how did you negotiate it?
I am a local broker actively seeking opportunities in real estate. Assisting people in buying, selling, and investing is my full-time job and passion.
How did you finance this deal?
Cash with a business partner
What was the outcome?
Although the project took an extra 40-45 days and incurred an additional cost of around 30K, we still generated a profit of 90K before taxes.
Lessons learned? Challenges?
We realized that we have a tendency to underestimate both costs and the time required. Moving forward, we'll be more thorough in estimating costs, ensuring a more accurate assessment, and we'll multiply our time estimate by 2-3 to account for potential delays or complexities.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, I recommend working with a local experienced agent like myself. Feel free to reach out, as I would be honored to help or guide you toward an agent in your area.
