Investment Info:
Single-family residence fix & flip investment in North Charleston.
Purchase price: $81,000
Cash invested: $30,000
Sale price: $150,000
This property was a great project except for the water management around the neighborhood. This house was located at the bottom of a hill and all the rain water from the homes up the hill would flow down to the back yard of the property. Because of that we spent additional funds by creating a water diverting retention wall along the entire backside of the back yard. Lesson learned...always walk the property and look at the grading of the land. If this area rains...where will the water go?
What made you interested in investing in this type of deal?
The numbers and ease of rehab made this deal attractive.
How did you find this deal and how did you negotiate it?
County Foreclosure Auction List
How did you finance this deal?
Ground Floor Finance funded this project. Very simple, draw schedule and cash flow friendly terms.
How did you add value to the deal?
Exterior paint and repairs. Re paved driveway. Complete interior rehab with restored kitchen cabs and bathtub.
What was the outcome?
$30k in profit
Lessons learned? Challenges?
Walk the exterior and determine where water will settle. I also learned that many painters in South Carolina suck.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Not on this one. I fired just about everyone.
