Investment Info:
Single-family residence fix & flip investment in Dallas.
Purchase price: $150,000
Cash invested: $50,000
Sale price: $250,000
We are currently working on a wholetail fix and flip here in Dallas. We estimate an ARV of $250,000 and we started construction on January 9th. We are planning for project completion by the end of February. We have fixed the foundation, completely changed the AC system and the location of the AC, and have taken down two walls to make the floor plan an open concept. I will upload pictures when the project is complete.
What made you interested in investing in this type of deal?
We were originally going to wholesale the deal but couldn't find a buyer so we found a family member who was willing to invest in the property.
How did you find this deal and how did you negotiate it?
We did some marketing in the area and got a call from the owner who wanted to move out but the house had some issues. We made her an offer of $140,000 and we would cover closing costs. She had it listed on the MLS for $210,000 but the realtor was neglecting the listing and it had been on market for 260 days. We told her we would cover realtor fees and Agreed on $150,000 to close the deal.
How did you finance this deal?
A family member was looking to invest so our company put in $20,000 and my family member put in $150,000 + $remainder of repair costs. We are running the management of the property and my family member is just waiting to collect the profits.
How did you add value to the deal?
We have re-configured the floor plan, fully updated all of the finish-outs, fixed the foundation, roof, fixed the concrete, and put in a new AC unit and moved it to the attic to have more efficient use of the square footage of the house.
What was the outcome?
The project is still underway, I will update this section when we complete at the end of Feb.
Lessons learned? Challenges?
I learned that taking on a house with foundation issues is not scary so long as you have allotted for the price of fixing it. I also learned that you can move an A/C unit into the attic to free up space. While it is slightly more costly, it is useful to know for the future.
The most important lesson I learned that it is much more important to let professionals do the work while I focus on finding more deals. It is a waste of time for me to work on the property when I can pay someone to do it.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Our foundation guy has good prices, is reliable, and even fixed some of the concrete changes that come with adjusting the foundation of a house for free.
