Single-family residence fix & flip investment in West Chester.
Purchase price: $240,000
Cash invested: $43,000
First investment property; current live in flip. Bought with a FHA loan, 5% down with an interest rate of 3.875. I invested a little over $31,000 in repairs (This is not including $13,560 in holding cost, rent would have been similar either way). With an ARV of an estimated $345,000 there is approximately $119,000 of unrealized equity at the time of the project being completed. I am pleased with the outcome of this property and look forward to future projects.
What made you interested in investing in this type of deal?
I had my mind made when looking for a home that I would find something that would work as an investment as well. After a couple of dead end markets in a very hot market we found ourselves looking at this property that was less appealing at the time to the rest of the market and took a shot on it.
How did you find this deal and how did you negotiate it?
Found with the help of a realtor on the MLS. The original listing price was 250,000. We placed an offer @240,000 with an Addendum to meet 5,000 over asking if there were competing offers
How did you finance this deal?
FHA - 5% Down - @ 3.875 - 30 year term
How did you add value to the deal?
Gutted and renovated the entire property, converted unused space into laundry room. Fixed curb appeal, Along with Market appreciation.
Looking good! I suggest you still track your holding costs and include them in your numbers. They are still part of the overall rehab costs and you can use them as a reference for your future projects. Anyways, congratulations!
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