Fix & Flip Properties
In 2021, Elevate Realty entered the "Fix & Flip" market targeting single-family homes and condos desirable to first-time home buyers. Entering the "Fix & Flip" market has further advanced the firm’s mission of providing high-quality yet affordable housing to the residents of Nashville. The firm was able to leverage its deal sourcing and contractor relationships from its rental portfolio to start this new business line.
The firm looks to acquire "Fix & Flip" properties that can be renovated in approximately 30-days, resulting in a 60 to 90 day hold period for each investment including the 30 to 60 day closing period for the end buyer. The firm believes these shorter cycle flips have higher returns and better risk-return characteristics. They also allow the firm to recycle its capital in up to four deals per year (e.g., four +/- 90-day projects).
So far, the firm has invested $1.5 million to purchase and renovate six homes and condos for resale.
FEATURED FIX & FLIP PROPERTIES
Listed in Nashville
Nashboro Villages
FIX & FLIP PROPERTY
$165,000
.png){kind=small}
Property Description
April 2021
55.1% IRR / $80,207 Profit / 1-Year Hold Period
In June 2020, we closed on a 2 bedroom, 2 bathroom condo in Nashboro Villages. The owner got behind on her mortgage and was forced to file for Chapter 9 bankruptcy protection.
After six months of discussion, we were able to structure a deal that allowed the resident to stay in her home for six months after closing while she finalized arrangements to move to upstate New York. Our purchase price was high enough to allow for full repayment of the mortgage and she was able to prepay six months of rent given there is a $10,000 homestead exemption in Tennessee in bankruptcy.
We performed a substantial renovation of the property at a cost of $36,031 when she left and closed on the sale exactly one year and a day after the purchase in order for the gain to be taxed at long term capital gain rates. We had multiple offers and sold the home for $300,000 resulting in a profit of $80,207 and 55.1% IRR.
Beds
2
Bath
2
Location
Nashville, TN
Denver Drive
FIX & FLIP PROPERTY
$295,000
Property Description
July 2021
215.3% IRR / $38,743 Profit / 47 Day Hold Period
In July 2021, we closed on a 4 bedroom, 3 bathroom single-family home on Denver Drive in Hermitage off-market for $295,000. We were able to perform a light renovation in about two weeks at a cost of $12,666 that included a new roof, exterior paint and a few interior repairs.
We had multiple offers and sold the home for $375,000 47-days after the purchase resulting in a profit of $38,743 and 215.3 IRR given the short hold period.
Beds
4
Bath
3
Location
Hermitage, TN
Carthage Highway
FIX & FLIP PROPERTY
$170,000
Property Description
January 2022
360% IRR / $67,008 Profit / 93 Day Hold Period
In January 2022, Elevate Realty purchased a 2,000 square foot 4 bedroom, 2 bathroom double-wide home in Carthage off-market for $170,000.
Importantly, the double-wide was on a permanent foundation and built after 2000 so our end buyer would qualify for conventional financing.
We performed a cosmetic renovation totaling $31,187 in about one month. We had multiple offers and sold the home for $300,000 93-days after the purchase resulting in a profit of $67,008 and 360% IRR given the short hold period.
Beds
4
Bath
2
Location
Lebanon, TN
FIX & FLIP PROPERTY
Walton Road
$119,900
.png){kind=small}
Property Description
May 2022
616% IRR / $38,415 Profit / 59 Day Hold Period
In May 2022, we purchased a 2 bedroom, 2 bathroom condo in Madison off-market for $119,900. We performed a cosmetic renovation totaling $15,334 in about one month.
At the time of listing, we had multiple offers and sold the home for $191,000 59-days after the purchase resulting in a profit of $38,415 and 616% IRR given the short hold period.
Beds
2
Bath
2
Location
Madison, TN
Hermitage Ridge
FIX & FLIP PROPERTY
$270,000
Property Description
May 2022
57% IRR / $28,258 Profit / 87 Day Hold Period
In May 2022, we purchased a 3 bedroom, 1 bathroom single-family home on Hermitage Ridge in Hermitage off-market for $270,000. This home required a pretty substantial $40,000 to $60,000 cosmetic renovation to get top dollar.
We decided to list the home as-is and sold the home for $312,000 87-days after the purchase resulting in a profit of $28,258 and 57% IRR given the short hold period.
Beds
3
Bath
1
Location
Hermitage, TN
FIX & FLIP PROPERTY
Waters View Drive
$330,000
Property Description
October 2022
$3,979 Loss / 88 Day Hold Period
In October 2022, we purchased a 4 bedroom, 2 bathroom single-family home in Nashville off-market for $327,500. We performed a cosmetic renovation totaling $37,500 in about one month.
We listed this property for resale at $419,000 which was supported by the comps. We decided to aggressively reduce the price given rising interest rates and a more challenging real estate market. We were able to find an all-cash buyer and about breakeven on this flip. We are proud of the outcome on this flip even though it did not meet our profit expectations.
Beds
4
Bath
2
Location
Nashville, TN
