Single-family residence fix & flip investment in Stateline.
Purchase price: $395,000
Cash invested: $60,000
Sale price: $525,000
owner occupied and simultaneous short-term rental property in Stateline, NV
What made you interested in investing in this type of deal?
I had lived in Southern California at the time and had just started my own commercial real estate consulting company. I wanted to relocate to Tahoe but was unsure if I could actually relocate full-time. So I bought a property that could double as a vacation rental even when I was home, and made 30K a year in additional income.
How did you find this deal and how did you negotiate it?
It was on the market. I ended up paying the asking price as I needed a 90 day escrow so I could file my 2nd year of self employment taxes. However, it was the exact property I wanted to live in so I was fine paying asking price.
How did you finance this deal?
Owner occupied 3.5% down FHA loan.
How did you add value to the deal?
I remodeled the entire home a couple months after I purchased the home. Again with the intent of living in the home for quite a while.
What was the outcome?
Life situations changed, I adopted a dog and the property values in Tahoe went up by $100 PSF since my purchase. I was starting the refinance process so I could remove PMI and that's when I realized the improved value price for my home. I'd bought and moved into a single family home with a backyard that was more ideal for my dog and after an issue with short-term rental guest I decided to just sell the townhome and move on. I netted a 6 figure return in 21 months.
Lessons learned? Challenges?
So many lessons.... I posted in a forum. I would say that buying in an HOA should be avoided. They are a pain to deal with and not worth the "benefits" that the HOA and clubhouse amenities offer.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Norm at RPM Mortgage makes deals happen. He knows how to work with all the pieces to get to closing. I had to bring him into the sale of my property to get the buyer a loan as her two prior lenders had underwriting issues they couldn't overcome.
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