Investment Info:
Single-family residence fix & flip investment.
Purchase price: $235,000
Cash invested: $40,000
Sale price: $322,000
My first true fix and flip. Found this home off market through a letter—it was a tired landlord and her last tenant had just moved out. Cosmetic updates only—was a great first project. Nice class A/B neighborhood. Profited ~$20,000 in the end (with commissions, holding costs and closing costs)—which I consider excellent considering how much I learned.
How did you find this deal and how did you negotiate it?
I found this off-market and did all the negotiating with the seller. I was driving the neighborhood and saw trash and furniture at the street—it was clear someone had just moved out, so I left a letter. The owner was ready to sell, retire and live off the proceeds of the sale.
I used my realtor at the time (I am now licensed) transactionally to draft the contract for us.
How did you finance this deal?
I took out a HELOC on my personal residence to fund the downpayment for conventional financing and renovation costs.
How did you add value to the deal?
New kitchen, 2 new baths, paint, refinishing hardwoods, new fixtures, curb appeal.
Lessons learned? Challenges?
I wish I had bought lower. It really is true, that you "make your money when you buy."
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
If you're in the Atlanta area, I work with the Moore Team @ Fairway Independent Mortgage—very investor friendly. DM me for more information if you'd like a connection.
