Single-family residence fix & flip investment.

1 Reply

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $62,000
Cash invested: $15,000
Sale price: $144,000

Accepted an offer to sell the house at $144,000 and close on October 16th! Looking to now use the profits from my first house to reinvest in SFH's!

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

My original thought when buying this property was to one day turn it into a rental property. Buy it and slowly fix it up while living in it. This year I finished all the repairs that I had been putting off over the years and started looking into another house to move into. During that process my realtor thought that I could get between 135 and 150k for the property which in turn made me think that the profit would be enough to buy two SFH instead of just this one as a rental.

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

I found this home through my realtor at the time. It was a HUD house so I did have to live in it for min. of two years which was what my plan was in the first place.

How did you finance this deal?

Traditional loan.

How did you add value to the deal?

I added value by gutting the bathroom, renovating the kitchen, putting new flooring in the living room/ hallway, and putting in a new driveway/ extending the driveway.

What was the outcome?

Outcome was in five years I took a house I bought at $62k and sold it for $144k. After putting about $15k of work into it.

Lessons learned? Challenges?

To manage time better and renovate quicker. Could have flipped this house after two years instead of 5.
Finding great help to renovate can save you time and headaches. Trust professionals and do not take every project on alone.

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