The Best $20K I Never Made

The property is a 3 bed, 1 bath house, about 1,200 square feet, built in 1952, with a 1-car detached garage. Even better—it’s just down the street from a rental we’ve owned for the past seven years so we know the neighborhood well. Location alone told me this had serious potential.

After walking it, I realized the layout gave us a great value-add opportunity: we could add another bedroom and bathroom, converting it into a 4 bed, 2 bath. That immediately pushed the deal over the top. Before I said yes, Jeff turned to me and said we’re buying it.

Here’s How the Numbers Break Down:

• Purchase Price: $65,000

• Renovation Budget: $20,000

• After Repair Value (ARV): $140,000

• Total Investment (incl. holding/closing): $92,770

• Loan-to-Value (LTV): 66.26%

That’s well under our max threshold of 75% LTV, which means we had room for multiple profitable exit strategies.

Three Exit Strategies That All Work

1. Buy & Hold:
With $1,400 in expected monthly rent, we’d net $425/month after financing at an 8% interest rate and expenses. That’s a 14.75% annual return, with a strong DSCR of 1.59 (1.2 minimum most banks require). Even better, a 75% refinance would return all of our capital—plus an extra $12,000 in equity we can take at closing. A solid win and a perfect example of the BRRRR strategy.

2. Turnkey Flip:
Selling at $140,000 (1% rule) to a turnkey buyer (with no commissions or concessions) would net us $36,479 in profit. Clean, simple, and VERY profitable.

3. Retail Flip:
If we listed it on the MLS, after paying commissions and concessions, we’d still clear about $16,000. Not as strong as the other two, but still solid if only we had to use this exit.

So, which one did we choose?
Buy and Hold. It made the most sense—strong cash flow, return all our capital, cash out equity on the backend, and another great addition to our rental portfolio.

But Let’s Talk About the Wholesaler…

When the assignment agreement came through, I saw that the wholesaler had it under contract for $45,000—which meant he was pocketing a $20,000 assignment fee.

Some investors might balk at that. Not me. No way. I signed the agreement immediately and locked in the 16 June closing date.

Here’s why:
I don’t care if a wholesaler makes $20K or $40K. If the numbers work for me, they work. Period.

Too many investors obsess over how much the wholesaler is making, rather than focusing on their own bottom line. In this case, we get a great property, the deal hits all our buy boxes, and someone else did the hard part—finding it. It’s a win all around.

Why Working with Good Wholesalers Pays Off

A good wholesaler isn’t just flipping paperwork. They’re investing in marketing, nurturing seller relationships, negotiating contracts, and bringing investors like me an opportunity on a silver platter. I didn’t have to cold call, send mailers, or knock on doors. I just had to say yes.

Trying to renegotiate after you see the assignment fee? That’s a fast way to lose a valuable relationship. Respect their hustle, and they’ll keep bringing you profitable deals.

This was, without question, the best $20,000 I never made. And I’m hoping this wholesaler brings me many more just like this one.