Why I liked it
This deal came to me through a very trusted source. The property didn’t need a whole lot of work but was priced very well due to a motivated seller.
Deal structure
I used a hard money lender as the primary and first lien holder, with a private lender to cover the down payment and rehab.
Deal outcome
This property was a huge win.
While the rehab took longer than projected, the contractor didn’t go a dollar over budget and did a great job.
After the rehab, it rented for $150 above what we projected with a two-year lease! It was perfect to flip as a turnkey rental. Honestly I struggled to decide between flipping it and BRRRRing it, but ultimately chose flipping because I needed to iron out the process of selling a turnkey so we could do more of them and do them well.
Projected Numbers
Purchase: $135,000
Rehab: $18,000
ARV: $170,000
Net Profit: $10,000
Private Lender Investment: $35,000
Private Lender Return: $2,333 (20% over 4 months)
Actual numbers
Purchase: $135,000
Rehab: $16,100
ARV: $178,000
Net Profit: $18,000
Private Lender Investment: $35,000
Private Lender Return: $2,916 (20% over 5 months)