Featured Fix and Flip Loan
Fix and flip loan for a 3-bed, 2-bath Cape Coral property with 82.5% LTV and 90% rehab financing. See how the deal was structured.
nmin readReleased on:August 14, 2026Last updated on:August 21, 2026
ABOUT THE DEAL
The featured property was a 3-bedroom, 2-bathroom property in Cape Coral that was recently seized by the bank following a foreclosure. The property was purchased for $200,900 and required a light cosmetic rehab of $42,450. The conservatively estimated after-repair value was $325,000, with an exit market rent of $2,400. The project showed a clear path to a profitable exit in both fix & flip and fix & refinance scenarios. We wanted to share this bread-and-butter deal to show that there are still many good opportunities to buy MLS-listed properties.
WHAT MADE THE DEAL SPECIAL
FIX AND FLIP PROFIT ANALYSIS
At Ridge Street, our lending philosophy is “Finance Successful Projects.” As a firm, this means we will only lend on a project if we expect that the real estate investor borrowing from us will make a profit. Here’s how we analyze profit for fix and flip investment properties:
- Estimate The ARV. By looking at comps of similar properties in the area, we estimate a conservative after-repair value of the property.
- Account For Purchase and Renovation Costs. With the purchase price outlined in the purchase contract and an estimated scope of work, we added these costs to our model.
- Account For Interest. Most of our fix and flip loans are for 12 Months. So, we conservatively consider the interest carry cost plus loan origination fees for a full 12 Months.
- Property Tax, Maintenance, and Other Costs. While investors hold these fix and flip projects there are additional costs we consider such as taxes as well as realtor and legal fees for both the purchase and sale of the property.
In this case, the deal showed a healthy profit margin even with these conservative deal assumptions.
THE RESULT
The successful fix and flip loan provided the client with the following Loan Terms:
- Loan Amount $203,700 for 12 Months.
- Initial Advance $165,825 and Rehab Holdback $37,875.
- Leverage: 82.5% of Purchase + 90% of Rehab.
- Rate 11.25% (As Drawn).
Before committing capital to a project, it's worth asking is it profitable to flip houses in the current market
More About Ridge Street Capital
Ridge Street Capital specifically focuses on providing investors with access to capital to acquire, renovate, build, and hold real estate. Partnered with local real estate investors across 35 US States, we’re changing the way real estate investors finance their projects.
If you’re interested in lowering your cost of borrowing or improving your borrowing experience, we’d love to work with you.
Zach Cohen is the Managing Partner of Ridge Street Capital, a direct private lender providing hard money and DSCR loans to real estate investors across 35 states. Under his leadership, the firm has funded nearly $100 million in investment property loans. He regularly works with real estate investors on rental property acquisitions, refinances, and fix-and-flip projects across the country.
Fix and Flip Loans
Funding For Purchase + Rehab
- $50,000 up to $3,000,000
- Interest Rate 10.5%-11.5%
- Origination Fee From 1.5%
- Up to 90% of Purchase and 100% of Rehab
DSCR Loans For Long Term Rentals
Perfect for first-time investors or experienced investors scaling their rental portfolio.
- Up to $2,000,000
- Interest Rates from 6.0%
- Origination Fee From 0%
- Up to 80% of LTV
DSCR Loans For Short Term Rentals
Designed for investors pursuing higher rents with a short term rental strategy.
- Up to $2,000,000
- Interest Rates from 6.25%
- Origination Fee From 0%
- Up to 80% LTV
Ready to Get Started?
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