1st Fix-N-Flip Property
Investment Info:
Single-family residence fix & flip investment in Romeoville.
Purchase price: $74,550
Cash invested: $15,000
Sale price: $135,000
This was a 3/2.1 that I had bought thinking it was going to be a buy and hold. Turns out after I closed I found out the HOA did not allow rentals. This was my first investment property so I learned some lessons along the way. This was a great time to invest so even a rookie like me couldn't have messed it up :-)
What made you interested in investing in this type of deal?
I cut my teeth in the lending business helping home buyers and investors finance fixer uppers. I saw them making money and thought... why not me!?!?
How did you find this deal and how did you negotiate it?
I used a realtor that I knew from an office I supported. That office specialized in buying HUD Foreclosures so I knew she would know how to identify the properties as well as how negotiations would work on a REO deal.
How did you finance this deal?
I used a bank that I'd set up a commercial loan with that didn't mind that the property needed work. It was a short term rehab loan that gave me 100% financing.
How did you add value to the deal?
Water had ran from the 2nd floor so I had to redo the ceiling on the first floor, redo the floors, new granite counter tops, SS appliances, and had to redo the basement. It was all done with Romex and proper permits were not pulled.
What was the outcome?
I was able to rehab the property in close on the sale 4-5 months later for about $45K profit.
Lessons learned? Challenges?
When buying in a HOA make sure know if they allow rentals, make sure you're not getting stuck with back HOA dues, and confirm with the village if there are violations you are inheriting that will be required to be fixed.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I think agents specialize in areas... so yes, if someone is interested in the SW suburbs (Plainfield, Bolingbrook, Romeoville, Joliet Area Kelly Reina is who I've used for years. I know many in this space that do a very good job. It's about someone with experience in your area of interest that supports you the way you need it. As for the lending, well that's what I do! I feel my 2-Step Program is the best! Need to be bank-able and have money, but what I provide my client is remarkable.