Investment Info:
Single-family residence fix & flip investment.
Purchase price: $180,000
Cash invested: $35,000
Sale price: $279,000
Partnered with up investor to take down our first flip together here in Kansas City. We were both buy and hold rental investors but came across an off market deal that we figured we could try our first true fix and flip on. My partner purchased the property in her name with a hard money lender. I funded the whole rehab, assisted on demo, and did the exterior landscaping. Received 3 bids from contractors and agreed upon one together. Basically split the rehab management 50/50 with weekly check ins with our contractors. I listed the property - first contract ended up in cancellation after buyer's got cold feet - ended up getting a higher sale price on the second escrow period. Split profits 50/50 after our respected investments into the deal. Walked away with 60k+ profit.
What made you interested in investing in this type of deal?
Wanted to learn the ins and outs of doing a fix and flip vs my usual buy and hold rental.
How did you find this deal and how did you negotiate it?
Partner found it off market and we offered the seller what we thought was reasonable and they accepted.
How did you finance this deal?
Hard money loan - 90% LTV - 10% interest.
How did you add value to the deal?
Full cosmetic rehab.
What was the outcome?
60k+ income that we were able to use to go purchase more buy and hold real estate.
Lessons learned? Challenges?
Holding costs are real. Conventional owner occupant buyers can be difficult. Ensure contractors will fix minor issues that pop up in inspections post-rehab.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am a licensed agent and listed it myself.
