Seller’s Market Indeed

Our first retail flip in a hot market went for $20k over asking the day it was listed.
Retail flip

About the Property


About the Deal

Why I liked it

It was a good-sized house with a big lot and lots of potential at a low price point.

Deal structure

50/50 JV Split

Deal outcome

The rehab took longer than planned thanks to some items on back-order being delivered incorrectly, causing me to go through back-order again.

It was worth it though, as the finished product came out GREAT. Clearly the potential buyers who visited the property thought so as well because I had multiple offers above asking before it had even officially listed.

I ended up selecting a slightly lower offer, because they were all contingent on an appraisal so it didn’t matter how high the offer was if it wouldn’t appraise that high.

The offer I chose was just below the highest offer, but that buyer was able to cover a delta in the appraisal if it were to come in low. (It ended up appraising for right at the purchase price, so it wouldn’t have really mattered if we’d chosen the higher offer anyway).

Projected Numbers

Purchase: $113,555
Rehab: $22,000
ARV: $175,000
Equity Partner Investment: $35,000
Equity Partner Return: $8,000

Actual numbers

Purchase: $113,555
Rehab: $21,300
Sale Price: $195,000
Net Profit: $34,800
Equity Partner Investment: $35,000
Equity Partner Return: $17,400

Deal Outcome


Lessons Learned

1. When flipping retail, quality matters. It’s worth it to wait for the right materials to give the “wow” factor.

2. Retail buyers look for completely different things than turnkey rental buyers.