Investment Info:
Single-family residence fix & flip investment.
Purchase price: $160,000
Cash invested: $30,000
Sale price: $220,000
Bought this property subject-to from a wholesaler for $8,000 and the note balance was $152,000 at the time of purchase. My holding costs were the principal and interest payments of just over $1000 a month, lawn care, which was $60 per cut, and the utilities. I hired a project manager to take care of the renovations and a local real estate agent to handle the sale of the property. Being a realtor myself I got a referral fee for giving that agent the listing. After paying out all of the commissions and having a few repairs on the inspection report I had to fix, the closing costs were around $17,000 leaving me with around a $15,000 profit once you add my referral commission back.
What made you interested in investing in this type of deal?
I was interested in this deal because it didn't take a lot of cash to get the job done and I had multiple exit strategies.
How did you find this deal and how did you negotiate it?
I found this deal through a wholesaler
What was the outcome?
The outcome for this property was a holding period of about 6 months with a profit of around $15,000. The great thing about this kind of investment though is my cash investment was only $45,000 which includes the purchase, renovations, and the holding costs.
Lessons learned? Challenges?
I learned a lot from this deal. First, make sure you know what your holding costs will be and
