1st RE deal I ever made
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $155,000
Sale price: $225,000
Was originally renting this house with some friends for over 3 years. Convinced the landlord to sell it to me and a year later I sold it for a profit after putting on a new roof and new kitchen and bathroom floor.
3 bedrooms
1 bath
attached garage
half finished basement
fenced in large yard
corner lot
What made you interested in investing in this type of deal?
was tired of paying rent. i knew the property well as i was living there 3 years.
How did you find this deal and how did you negotiate it?
was renting it and the landlords were of old age and getting ready to retire. i kept mentioning it until they started to bring it up and i got them down on price and signed the paperwork rather quickly. i had no idea what i was doing but it felt right.
How did you finance this deal?
20% down traditional mortgage 30 years
How did you add value to the deal?
fixing roof and redoing a couple floors. didnt have to do much considering the comps in the neighborhood
What was the outcome?
decent profit. my only regret is that i didnt wait the full year to sell and paid a little more in taxes and fees accordingly
Lessons learned? Challenges?
Being my first property I was just excited to make a buck. If I waited a couple more months I probably would have sold for the same price and paid less tax on the gains. I had no idea but at the closing I ended up selling it to an old co-worker whose name I didnt care to recognize before hand. Made it a little awkward at the closing but it all worked out in the end.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Robert Crudale with Remax of Rhode Island is highly recommended