I Did Something Incredibly Stupid...

[Kate Gagnon]

I did something incredibly stupid that I wouldn't suggest for anyone, and as far as all I've read here, is NOT what you're supposed to do. But anyhow, I did it. I bought a single family house, that I intended to flip, as my very first flip project, sight-unseen WITH a squatter that needed to be evicted.

Now, I didn't write this post because now I'm stuck with no way out and my pockets turned, it actually worked out OK. I bought the house in January, with the intent to flip it in the early spring for a 50K profit after 15K in repairs. The purchase price was 78K and I put a very hard-earned 30K down with a private lender,a d financed the 48K for 1 year at 10%. The only reason I decided to buy sight-unseen was because in every scenario I could come up with, the loan for 48K wasn't going to make me broke, and I could always BRRR the property.

Just this week, and almost through the eviction process, I actually received an offer on the property 15K above what I paid as-is, cash. I accepted and will close this Friday, and only had $480 in carrying cost. I wouldn't suggest anyone do what I did unless, like in my situation, you weren't going to go completely broke, and had multiple exit strategies. BUT the RE bug has bit me hard, and I'm going to keep rolling until I can buy a nice 4-5 unit cash!

[Andrew B.]

it sounds like you took a risk and it worked out. good for you. if anything, I think this solidifies the phrase, "you make your money when you buy, not when you sell." obviously, you had enough instant equity when you purchased it, to leave a lot of room for profit.