Live-In Flip utilizing First-Time Buyer Loan Assistance Programs
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $242,000
Cash invested: $17,000
Sale price: $365,000
This was a Live-In Flip investment using our 1st Time Buyer Loan Assistance programs to help offset the initial downpayment.
What made you interested in investing in this type of deal?
It was based on our family's needs at the time & with the use of loan assistance programs available to us we couldn't refuse.
How did you find this deal and how did you negotiate it?
This was an REO that had been on the market for over a year. We stumbled across it on Zillow and there wasn't much negotiating the bank would do with us which was fine because we knew it was a great deal. Previous owners had invested a lot of money for remodeling prior to foreclosing on it. We used our real estate agent to help us close on the deal.
How did you finance this deal?
1st Time Buyer Loan Assistance Programs and our own cash
How did you add value to the deal?
Did minor repairs inside and cleaned up the deferred maintenance on the yard using only about $5000 of our own money.
What was the outcome?
After 4 years of living in it, which served our family well at the time and doing a small amount of work to get it ready to resell we were able to sell it with 2 weeks of putting it on the market for a good size profit.
Lessons learned? Challenges?
Always do your due diligence. Take your time and never let your emotions get the best of you by remebering that sometimes the best deals are the ones you didn't get. At the end of the day, it's all about the numbers and if those numbers make sense in your situation. Know your exit strategy going into the deal and best to give yourself a few alternatives.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes - Hawaii HomeOwnership Center (if you want to utilize the 1st Time Buyer loan assistance programs) and their in-house mortgage brokers