Other fix & flip investment in Palm Beach Gardens.
Purchase price: $109,000
Cash invested: $11,000
Sale price: $185,000
Originally lived in the home with my fiance. We were able to save money and buy a house. We kept the condo and rented it out for a few years and had minimal success. We got burned by our second year of tenants and a whole mess of HOA headaches. We ended up selling for a sizable profit, plus the sale of our other house to buy our dream home.
What made you interested in investing in this type of deal?
100%... minus the HOA headaches of course
How did you find this deal and how did you negotiate it?
I was renting the place prior to buying. I kept being a bug in my landlords ear. I guess it was essentially cold calling and I didn't realize. He eventually sold to me because he was tired and didn't want to landlord anymore.
How did you finance this deal?
Wedding present and 20% down.
How did you add value to the deal?
Rehabbed the entire house flooring and remodeled the kitchen. All on my own. Learned a lot.
What was the outcome?
Final outcome was we walked away with about 60K which we paid down a lot of debt and held the money until we sold the current house to buy our dream house. A little more than we needed but awesome. We did rent it for a few years and I didn't manage the money very well.
Lessons learned? Challenges?
We got seriously burned on the sale because of the capital gains. When we moved out of hte condo it was about 2 months shy of two years which would have saved us about 12K!! FL law states that you can keep all gains from a primary residence if you lived there for 2+ years. Bought in April of 14' and moved into a house in Feb of 16'. Now I know! Also, tenants. Get good tenants and don't be overly understanding. Empathetic, but not too much. Its a business.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yeah. Neeraj Mahani. RE Agent. Bobby Bashwiner. Broker
Congratulations! If you knew about the capital gains and waited two months, you would have made another 20%.
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