Single-family residence fix & flip investment.
Purchase price: $39,900
Cash invested: $40,000
Sale price: $57,765
I saw this house on the MLS the morning that it was listed, and I knew it was a good deal at the asking price due to the desirable school district. I made a full price offer that day, and it was accepted. I bought it and found a landlord who was looking for a fixer-upper in that school district. He bought it 23 days later from me. He renovated it and rented it, and he told me it appraised for $103,000.
How did you find this deal and how did you negotiate it?
I check the MLS daily. I saw this on a Saturday morning the day it was listed. I knew instantly it was a good deal at the asking price. The seller was a lady who had lived there for 63 years. I made a full price offer, which was accepted that day. I sold it 23 days later to a landlord.
How did you add value to the deal?
I bought it for $39,900, which was the full asking price for the lady selling it after 63 years. I sold it for $57,765 to a landlord looking to spend around $15,000 in renovations. The landlord rented it and refinanced it. His bank appraised it for $103,000. With a 75% LTV, the landlord pulled out all his cash. This house rents for around $895 a month, which makes it a rare yet affordable unit in an award winning school district.
Congrats on a fast turnaround! Having cash for these situations makes life so much easier.
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