Welcome back to The Virtual Investor! Michael and Paul are back with a detailed breakdown of their latest deal in Wisconsin.
Let’s take a look at how they acquired the property, the renovation process, and the final results. Acquisition and Funding This property was sourced through an online auction. They used a mix of private lenders for funding, and the initial goal was to complete a quick flip. The plan was to purchase the property for around $85,000 and sell for approximately $125,000 after minor renovations. Renovations The property had a mix of dated and updated features. While it wasn’t in bad shape, the team still invested just under $3,000 for some necessary fixes: cleaning, minor storm door repairs, kitchen updates, and lawn maintenance. These enhancements made the property more marketable. The Outcome What started as a projected 3-5 month flip ended up being 4-months. After accounting for all costs—purchase price, rehab expenses, holding costs, and agent commissions—the property sold for $117,000 (a bit under the anticipated $125,000). The final profit came in at about $12,160. Key Takeaways While this deal didn’t deliver the high returns they initially hoped for, it still resulted in a solid ROI, especially considering the relatively low-risk nature of the rural market. The team’s ability to work with private lenders kept capital requirements low, and the market demand in Ladysmith showed steady growth, making it a decent win. The key takeaway? Rural markets offer great opportunities with less competition and lower costs—though they may take a little longer to flip. What's Next? Looking ahead, Michael and Paul are preparing for more deals. They also note that they’re staying agile in response to the current market, where interest rates and inventory levels will play a big role in the spring market of 2025. Make sure to follow them for more updates, as they continue to leverage their knowledge of secondary and rural markets to maximize returns. And if you found this review helpful, don’t forget to give a like and stay tuned for more insights in future posts! Stay tuned for more updates, and happy investing!
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