Single-family residence fix & flip investment in Wasilla.
Purchase price: $78,000
Cash invested: $20,000
2-bedroom 1 bathroom SFR with 1-car garage with several old cars and 10 truckloads of debris in the yard. Added another bathroom and increased the garage to hold 2 cars.
What made you interested in investing in this type of deal?
I have invested in several real estate notes but needed something that could generate cash. I like the idea of working on a house rather than getting a job.
How did you find this deal and how did you negotiate it?
I partnered with a realtor for 50% of the profit instead of his commissions on the purchase and sale. It was a divorce sale and he got the deal from another realtor that didn't want to deal with the mess and drama
How did you finance this deal?
Cash, 401k loan, credit cards
How did you add value to the deal?
Increased useable space in garage, moved laundry facilities to garage. Added boiler and subfloor heat. Added 1/2 bath. Removed debris. Repaired drywall. Repaired roof.
What was the outcome?
Buyer took early occupancy waiting for her other house to sell
Lessons learned? Challenges?
Trying to conserve cash, I hauled all the trash and debris to the dump myself. It was very frustrating coordinating trips to the dump with trips to haul materials and tools. A dumpster would have been worth the extra money. Also, trying to save money on thermostats, I ruined the boiler control board -- a $650 extra expense. And I see how a rehab can be a black hole. Everything I touched ended up being more work than I expected I might have spent 2 more months if Tyler hadn't sold early
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Tyler Bobo is a very talented realtor with lots of experience with creative financing, owner financing, low-income housing, and distressed property rehabs. Two other realtor friends, Jay Bruzas and Tyson Kroon convinced me that real estate is the best investment.
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