Single-family residence fix & flip investment.
Purchase price: $152,000
Cash invested: $54,392
Sale price: $309,950
The more we do the luckier we get! This was a longer flip because we lived in it for a short while. We purchased this from HUD and spent more than we should have on the rehab because it was our primary residence after the work was completed. Our plan was to stay in this house a while but an opportunity came up to purchase a nice property we had wanted for years so we sold and moved. If we went in strictly as a fix and flip we could have saved $15,000 on the rehab costs. Still a $102k Profit
What made you interested in investing in this type of deal?
We needed a home to move out of my parents with our 5yr old daughter and son on the way. We wanted to create equity so a fixer upper was the way to go.
How did you find this deal and how did you negotiate it?
I found this through HUD homestore and offered a low amount which they countered immediately with their lowest acceptable price.
How did you finance this deal?
We took out a private loan with a 2 year repayment plan.
How did you add value to the deal?
We completely renovated, removed walls, added kitchen, new roof, trim and mill work, flooring, baths with granite slab and tile
What was the outcome?
We lived in this beautiful home for nearly long enough to avoid capital gains but an opportunity came along that made sense to sell and move.
Lessons learned? Challenges?
This home was in a less than desirable neighborhood. Before you buy a flip make sure the neighbors houses wont scare off a buyer. You can't fix the neighbors house only yours.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am an agent and negotiated my commission away to the seller to get a better deal.
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