Investment Info:
Single-family residence fix & flip investment.
Purchase price: $129,000
Cash invested: $30,000
Sale price: $229,000
Single family 3/2 turned 3/3 with MIL unit
Purchased from a wholesaler
Cash for keys strategy deployed to establish vacancy
What made you interested in investing in this type of deal?
As a first-time flipper, I was looking for a property to rehab with a high yield that was not a complete gut job
How did you find this deal and how did you negotiate it?
I was working with a broker in that area who presented the property to me
How did you finance this deal?
I was able to borrow cash from my father (and investing mentor) to purchase the property cash
How did you add value to the deal?
Flipped in an 8 week rehab including cosmetic, electric, plumbing, and landscaping improvements to the interior and exterior of the home, adding one bathroom and a back deck. When I purchased the property, it was occupied by squatters and was apparently being used as a drug house. After extensive cleaning and renovations, the property was a beautiful home again.
What was the outcome?
A total profit of about $50,000 and the confidence to do the process all over again
Lessons learned? Challenges?
This was my first solo project as a real estate investor, and as such I attribute most of my knowledge and experience to this transaction. Through this flip, I was able to develop my negotiating skills, learned to manage workers, and refined technical skills like patching and (properly) painting sheet rock. I learned the risks and rewards of property ownership, and how advantageous it is to be within a mile radius of a Home Depot branch. But most importantly, I learned how much I am capable of.
