First but not last deal!
Investment Info:
Single-family residence fix & flip investment in Conover.
Purchase price: $82,500
Cash invested: $10,000
Sale price: $130,000
This was a home I purchased to do a slow fix and flip to get my foot in the door. I originally wanted to have this become a rental property. Since I had stayed there for over 2 years, and the property values increased along with the value I added to the home, I decided to sell. This was a 3 bedroom 1 bath ranch style home with a fenced in backyard. I did a complete gut of the kitchen, created a separate laundry room, and added a front porch.
What made you interested in investing in this type of deal?
I was looking for a property that would be a good rental.
How did you find this deal and how did you negotiate it?
I had an agent and it was found on the MLS. The original asking price was $85,000. There were a few things that came up during the inspection. With that we got them to drop the price. I knew it was a good deal at the $85,000 price so I wasn't wanting to push too much.
How did you finance this deal?
I was a first time homebuyer, so I just used a USDA loan.
How did you add value to the deal?
I completely gutted the kitchen. I got very lucky on the kitchen remodel. My friend's sister was going to throw away brand new cabinets because there weren't enough to fit in her house. I got them for free. I did all the work on my own with a little help from my dad. We added a new front porch and painted the outside and inside.
What was the outcome?
I profited close to $40,000. I was able to become debt free just a month after getting married.
Lessons learned? Challenges?
Fix the big problems before the cosmetic problems. The week before closing we had to address a drainage issue that I put off until the last minute. I also had a difficult neighbor. I originally wanted to rent it, but do to the neighbor I knew I would always have him calling about the tenants. So I learned never have one exit in mind. Adapt to the situation.
