First Flip = Hoarder House

1 Reply

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $359,000
Cash invested: $52,000
Sale price: $473,000

Hoarder House! Five truckloads and trailers donated, two dumpster. Great Bones! Great Location!

What made you interested in investing in this type of deal?

We had been looking to jump into real estate investing and inventory was slim. The numbers worked. We were tired of sitting on the sidelines, running numbers and never jumping in!

How did you find this deal and how did you negotiate it?

Our Realtor, at the time, found this deal for us. It was in the MLS, but it was not selling due to price and all the stuff in it! We took it with all the stuff, was able to close in 3 weeks and promised not to nickel and dime the sellers during inspection period.

How did you finance this deal?

FHA financing with 3.5% down

How did you add value to the deal?

We rehabbed every.single.room in the house, took down the old greenhouse & landscaped it. Tons of wallpaper!!!

What was the outcome?

My Realtor listed it in the MLS on a Wednesday or Thursday and set an open house for Sunday. By the time of the open house, we were under contract. Open house day: people were standing outside of the house waiting for the open house to start.

Lessons learned? Challenges?

Lessons learned: Don't panic - you can figure it out!

Challenges - We started with a rehab team that was screened and on board, but finding replacements and additional contractors was a challenge at times. Contractors would start and then not show up to finish the job.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with a Realtor and Lender that were great! Most lenders would not even talk to me when they found out our goal was to flip the property. The lender I used was able to figure things out for us.

How did you FHA a flip? You're supposed to live in it a year. Are you sure you are allowed to sell it? Congrats on the property.

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