Investment Info:
Single-family residence fix & flip investment in Austin.
Purchase price: $263,000
Cash invested: $85,000
Sale price: $420,000
Bought for $264k with traditional financing and 25% down. Flip took approx 2 months and got an off market offer we accepted anc closed about a month later. We put approx $85k cash into the remodel.
What made you interested in investing in this type of deal?
Great area and enjoy doing fix/flips
How did you find this deal and how did you negotiate it?
We got it off the MLS. We lost in a multiple offer bid but kept in touch with the listing agent and got an early notice when the winning bidder ended up backing out and we picked it up.
How did you finance this deal?
Conventional loan with 25% down.
How did you add value to the deal?
We pretty much gutted the original home and put in all new. We removed a wall between the two main living areas as well as took some space from the garage to open everything up. Had trees removed and trimmed and hauled a lot of trash and debri out from the yard.
What was the outcome?
After all carrying, costs, remodel costs, finance costs and selling costs we made a profit of approx $40k
Lessons learned? Challenges?
The biggest challenge was finding the home in the first place. We are in an area where everything is going with multiple offers. We learned not to completely give up on a property just because you are not the winning bid.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am a real estate agent. We worked with a great local lender for anyone doing traditional financing.
