Single-family residence fix & flip investment.
Purchase price: $84,000
Cash invested: $25,000
Sale price: $125,000
This was my first investment property. I purchased this from a friend that was a tired landlord and the tenants really did a lot of damage to the property while they was living there. This was the classic, stinky, gross house that took a lot of time to get right but ended being a very nice house that was brought back up to the quality of the neighborhood. I learned a lot on this flip, most of which is what I dont know and even more about my personal rehab skill sets. I learned I pretty good at laying down flooring and fixing drywall but I really have no business doing plumbing. I learned after having to redo the bathroom twice in the basement that I could have hired a professional and had a nice space if I had done that to begin with but it still turned out pretty nice in the end. Took me 6 month to finish the rehab as it had a framed out basement but the previous owner did not have it finished out. I got to enjoy living here for the last 6 months in the finished product before listing with a local relator. We got a full asking price cash offer with it being on the market 3 days. I learned later this was mostly a symptom of the house being underpriced in the market but I was still very happy as I was expecting a lower sales price. The new owner even sold the house a year later at a profit.
What made you interested in investing in this type of deal?
This was my first deal and had a long term interest in real estate investing. After spending months listing to the podcast I had the confidence to take my first step.
How did you find this deal and how did you negotiate it?
I bought this from a friend that was in the process of a divorce and was a tired landlord.
How did you finance this deal?
Traditional FHA loan that I paid the down payment from tax return I had filed earlier that year. The rehab was done almost completely on credit cards.
How did you add value to the deal?
It was a complete remodel with finishing out the basement.
What was the outcome?
All and all it went well, a profit was made and a new family got a nice, safe home at a fair price.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I worked with Elijah Castelli at Crye-Like and he done a wonderfull job. He has became my goto agent in the years that has followed.
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