Single-family residence fix & flip investment.
Purchase price: $35,000
Cash invested: $20,000
Sale price: $71,000
I bought this house to live in when i was 22, It took a while to close and I ended up closing the day my lease ran out, so I moved all my stuff into this house which had no heat or hot water and it was October in upstate NY. My HVAC skills came in handy and I installed a new boiler and baseboard, hot water heater, and all new plumbing in the whole house. Then kind of went room by room and fixed it up after work and weekends over the course of 4.5 years while my 3 family paid for my mortgage.
What made you interested in investing in this type of deal?
It was cheap and I didn't have a lot of money
How did you find this deal and how did you negotiate it?
It was across the street from my friends house and we were sitting on the porch one day enjoying a frosty beer and it was just sitting there looking at me asking for me to buy it. This house was owned by siblings and it sat vacant for a couple years so I was able to pick it up pretty cheap because it needed a bunch of work.
How did you finance this deal?
Went back to my trusty friends at the bank and they gave me more money. 30 year FHA fixed Int. Rate Loan
How did you add value to the deal?
Sweat Equity on top of Sweat Equity
What was the outcome?
House came out nice and sold it to a lovely older couple who still live there today
Lessons learned? Challenges?
Don't bite off more than you can chew
Don't be afraid to ask for help
Pizza and Beer is a great payment method
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