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. 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.
Lessons learned? Challenges?
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. I got full asking price cash offer with it being on the market 3
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.
Congrats man! Sometimes the most important thing is the lessons learned to take to the next deal. You still came out on top and gained some experience!
Keep it up!
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