My First fix & flip
Investment Info:
Small multi-family (2-4 units) fix & flip investment.
Purchase price: $180,000
Cash invested: $40,000
Sale price: $299,000
4 family flat, 3 units occupied rents all at $625.00 increased all to $750 with 3 month,6 month,12 month and month to month options. All residents stayed through 12/2021 then we sold the property.
What made you interested in investing in this type of deal?
The price was right and the fact that it was 3/4 occupied.
How did you find this deal and how did you negotiate it?
We found the deal just on Zillow and talked it down from $195k due to the conditions.
How did you finance this deal?
VA loan
How did you add value to the deal?
We remodeled every unit bringing the value to $1200 a month from $625.
What was the outcome?
The outcome was good, it was a JV deal so we split the profits.
Lessons learned? Challenges?
I would have bought in a different neighborhood with better comps to have a higher ARV value. I would have actually keep the property and corporate leased or air bnb each unit. I got wind that what the new owner did and they are making $1600 for 3 month leases.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, absolutely would recommend the agents I worked with.