Single-family residence fix & flip investment in San Jose.
Purchase price: $430,000
Cash invested: $120,000
Sale price: $657,000
1st ever flip. Did it about 5 mins away from where we lived. Learned a lot, had a lot of help. The goal was to build capital for future investments. Bought as a 2/1 sold as a 3/2, added 500 sq/ft and did a complete remodel of the home, inside and out.
What made you interested in investing in this type of deal?
Wanted to build capital for future investments. It was cheap, and we saw potential in that area. It was priced very low relative to other houses in that neighborhood (for good reason) but we felt we could put some cash in and flip it.
How did you find this deal and how did you negotiate it?
It was suggested by our real estate agent. We did an inspection and found some issues and was able to negotiate it down by about $50K.
How did you finance this deal?
Purchased this with a conventional loan. We were renting at the time and had some money saved. Put 10% down.
How did you add value to the deal?
We added 1 br and 1 bth. Added 500 sqft and rehabbed the whole place down to the studs.
What was the outcome?
Accomplished the goal and we turned a profit.
Lessons learned? Challenges?
We went over budget, we were behind schedule and put in more personal hours than planned. We did a lot of the rehab ourselves (my self and family). Getting permits and passing inspections is so painful in our area. Different inspectors will pass different things, there was no consistency.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
We worked with a real estate agent for the purchase and sale. We used a mortgage broker that helped our family before and got us a good deal we barely qualified for. Family and friends helped with rehab. We paid some sub-contractors for some tasks like sheetrock.
Congrats and thanks for sharing! Are you considering other flips/investments in this area or did this experience turn you off?
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you