Investment Info:
Single-family residence fix & flip investment in Oakland Park.
Purchase price: $370,000
Cash invested: $120,000
Pick up a property for fix and flip but ended refinancing the property and keep it as a rental. The goal is to let the market adjust and hopefully go up and sell down the line.
Rehab cost was estimated at 100,000 but went over budget by 20k
https://www.dropbox.com/sh/26ltbtgstvqaeqa/AABX2CO52d1IxB4zMcnu16o3a?dl=0
What made you interested in investing in this type of deal?
The ability to increase my capital for rental properties. Fix and flip was not part of my investment strategy but decided to go ahead and attempt to flip.
How did you find this deal and how did you negotiate it?
I found the deal through a wholesaler that had it off market. I definitely should had negotiated more.
How did you finance this deal?
Hard money lender 20% down from two other partners
How did you add value to the deal?
We renovated the entire property, including pool area and a pool house in the back. did the entire yard new and added a modern touch to the property.
What was the outcome?
We decided refinance to get replace the expensive hard money loan and rent the property for a couple of year. We expect the value in that area will increase and might present a better opportunity to sell. we did not see the benefit of potentially losing money now when we could just rent it.
Lessons learned? Challenges?
Where do i Start?
1. Contractor are not always easy to deal with and we should had been really specific with what we wanted. I mean really specific not spare any details.
2. Plan better the end look.
3. More conservative with the numbers and rehab cost.
4. Better partnership structure
5. Pool cost more than expected and the yard cost way more than expected
6. be more aware of scams.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
any of the people i work with at this time I wouldn't feel comfortable recommending.
