Single-family residence fix & flip investment.
Purchase price: $200,000
Cash invested: $20,000
Just getting started on our first live-in flip / Airbnb house hack.
Asking: 240k Purchase: 200k Appraisal: 220k ARV: 360k
The goal of this house is to add some value, build a home for my family, and attempt our first major rehab. As an added bonus we're going to rent out the 3rd bedroom on Airbnb.
What made you interested in investing in this type of deal?
It was time to move out of the 4plex we're house hacking.
How did you find this deal and how did you negotiate it?
It was on the MLS for 6 months at 240k. We offered 190k and settled at 200k.
How did you finance this deal?
We purchased the home with a VA loan that covered all of the purchase and some of the closing. (207K 30yr 2.9%)
The rehab will be funded via an interest-only 2-year loan from family. (100k 5%)
How did you add value to the deal?
We expect to spend 100-120k on the rehab. This includes foundation work, adding a full bathroom, all new kitchen, new master bath and the addition of a mudroom. In the end, this 2200sqft 4 bed / 2 bath will be a 3 bed 3 bath.
What was the outcome?
Stay tuned to find out
Lessons learned? Challenges?
I was told that my offer was too low and not worth it, had I listened to that advice I would still be looking. Know your numbers and make the offer that work for you. Be prepared to walk away.
Inspections and due diligence are critical steps in a project of this size.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Lenders, inspectors, contractors, lawyers... dont try to figure this stuff out on your own.
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