Investment Info:
Single-family residence fix & flip investment.
Purchase price: $69,000
Cash invested: $25,000
Sale price: $117,500
THE biggest nightmare of a flip you can ever imagine. From sketchy contractors, to having our water heater and furnace stolen not once BUT TWICE. We had two buyers backout, we had to pay many FHA appraisals. This was our first Cleveland flip, but we learned a lot. We now have 6 projects complete this year and this is by far the one that taught us the most lessons.
What made you interested in investing in this type of deal?
First midwest flip
How did you find this deal and how did you negotiate it?
Wholesaler (did not negotiate) first mistake on this oen
How did you finance this deal?
Hard Money Loan
How did you add value to the deal?
Complete Cosmetic Flip
What was the outcome?
House was robbed twice, buyers backed out multiple times, contractor would not finish work...eventually sold to an FHA buyer ($500 profit) should have been well north of $17,000 before all of the issues we ran into.
Lessons learned? Challenges?
Manage contractors, get better entry point on deals, know the neighborhoods you are flipping in, pay to setup mobile camera (initial costs up front) will save you so many headaches down the line. Ensure you vet contractors. Do not jump on the first offer your receive within the first week.
