Investment Info:
Small multi-family (2-4 units) fix & flip investment in Auburn.
Purchase price: $410,000
Cash invested: $45,000
Sale price: $545,000
This was my first flip. Going into 2023 was not the ideal time to take on a first flip project, but this opportunity came off market and was a duplex that would work as a rental if it did not sell, so we felt comfortable moving forward. I could have taken this project down by myself, however I wanted to bring a couple of my siblings into the deal. They did contribute resources which made it lower risk for me and little out of pocket.
What made you interested in investing in this type of deal?
Simple project, owner occupied side needed heavy cosmetic rehab. tenant side was in good condition. Purchase price was in range were we could rent and be okay if we had to long term.
How did you find this deal and how did you negotiate it?
Agent I know was getting ready to list, but cousin's owned the property and had a falling out and wanted a quick sale.
How did you finance this deal?
hard money , out of pocket for down payment and partnered for rehab.
How did you add value to the deal?
We did a full exterior remodel, new roof, paint, landscaping, some windows doors, clean up. Then did a full interior remodel on one unit. Made it an ideal owner occupied. modified older cabinets for a dishwasher and refinished the hardwood rather than replace. New counters, can lighting, new trim, outlets, fixtures, flooring, heat registers, etc. etc.
What was the outcome?
Solid sales price, waived inspection closed smooth and within our projected 3-5 month timeline.
Lessons learned? Challenges?
things worked out well. Had some scope creep, but still cleared over $40k after all fees, taxes, and selling costs. I also made a commission on the sale. Not a bad outcome.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I represented myself and my partners.
