Case Study: Fix and Flip Loan in Clewiston, FL

About the Deal

A borrower purchased a single-family property in Clewiston, Florida, with a $97,000 auction bid, 35% below its Zestimate before renovation.

The plan was a standard renovation and resale, with a $20,000 rehab budget and a projected ARV of $165,000. At underwriting, Ridge Street Capital reviewed both exit paths: sell after renovation or convert the property into a rental and hold. Read more about this option in our guide to fix-to-rent loans.

Both outcomes worked. Ridge Street Capital structured a fix-and-flip loan covering 80% of the purchase price, with the full renovation budget held as a funded holdback. That gave the borrower flexibility to complete the flip or refinance into DSCR financing in Florida if the rental exit became the stronger path.

What Made It Special

Both exits were underwritten before closing. Ridge Street Capital did not underwrite the deal as a flip only. At a $165,000 ARV, $20,000 rehab budget, and 6-month timeline, the resale exit showed an estimated $26,800 in net profit. If the borrower converted the property into a rental, projected monthly rent of $1,100 against a $994 PITIA produced a 1.11 DSCR. The investor entered the deal with two viable exit paths.

The auction purchase created built-in margin. The $97,000 acquisition price was 35% below the property’s pre-renovation Zestimate. That discount gave the borrower cushion under either exit. The flip had room for resale profit, while the rental strategy had a low basis relative to the post-renovation value. At full funding, the loan-to-ARV was 59.15%.

The deal required limited cash to close. Total cash to close was approximately $25,700 on a project with a $165,000 projected exit value. That means the borrower controlled the deal with less than 16 cents of capital for every dollar of ARV, supported by a low purchase price and a loan structure that funded the rehab budget.

The Result

Ridge Street Capital financed a below-market auction acquisition in Clewiston with two viable exit paths, a 59.15% loan-to-ARV position, and less than $26,000 in cash to close.

• Loan amount: $97,600, including purchase advance and rehab holdback
• Rate: 10.99%
• Loan term: 12 months
• LTC: 80%
• Loan-to-ARV: 59.15%
• ARV: $165,000
• Cash to close: Approximately $25,700

More About Ridge Street Capital

Ridge Street Capital provides fix-and-flip loans, DSCR rental loans, and ground-up construction financing to real estate investors across 36 states. Every deal is reviewed by a team focused exclusively on investment properties, so the underwriting questions are tied to what makes the project work.

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