My experience as a first time flipper
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $91,000
Cash invested: $15,000
Sale price: $137,000
Bought foreclosure (ranch) 3 bed 2 bath
Self financed - home equity
Paint, carpet, new kitchen cabinets, new appliances, new fixtures, landscape
Did all work myself except carpet installation
Held it too long but was my first project and working full time
What made you interested in investing in this type of deal?
I have always been interested in RE investing. I have enough skills to do many tasks and enough sense to know when to ask for help. Original plan was to buy and hold. Instead, I sold to remove note away from my primary residence. Could have refi'd but didn't
How did you find this deal and how did you negotiate it?
Bought through an agent. Presented all cash offer with immediate close.
How did you finance this deal?
Self financed - home equity
How did you add value to the deal?
Cosmetic.
What was the outcome?
Sold it by posting FSBO. Agent contacted me and had a buyer. Paid her commissions she earned. All happy.
Lessons learned? Challenges?
Have an exit strategy to fall back on.
Do not panic - you can always rent the home even it's for a discount.
Do not attempt to do all the work yourself. Carrying costs will eat you alive.
The longer you hold on to the property, the more stress builds up.
Visited the town planner to ensure that nothing "big" was planned - new road, new development, gas station etc.
Talked to the neighbors prior to purchase to better understand the area.