My First Investment: Fox Avenue - From Feeble to Fabulous!

[Abby Larsen]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $48,000
Cash invested: $80,000

We are just about to list this property in Iowa! Our potential profit is going to be around $30k!

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

I have always had an eye for finding the beautiful potential in houses. Ever since I was a little girl I used to come up with my own floor plans (just for fun). I saw this 780 sqft property in this quaint, fast market, upcoming town in Iowa and couldn't say no!

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

I have a great friend who is an experienced realtor. She pointed this property out. We negotiated the asking price down by a couple thousand and waived an inspection. Had a cash deal and off we went! Starting working on the property the day the keys were in my hands.

How did you finance this deal?

I was able to work with an investor on the East Coast whom I met through another employer. He was interested in the real estate market in Iowa as he comes here for work trips. I was able to pitch my idea to him and he was on board.

How did you add value to the deal?

By investing around $30k in this home we were able to make this home not only live-able again, but something appealing to a variant mass of potential buyers. Before this home was limited as to who could live in it due to how it was laid out. It was dark, dingy, small, and very compartmentalized. Now it is open, clean, modern and appeals to families, single people. older couples, younger couples. You name it!

What was the outcome?

We are about to list this property in a week or so and expecting to list for around $115,000 which would be around a $35k profit!

Lessons learned? Challenges?

I have learned to be sure and include "unforeseen" costs in the budget moving forward and learning to cut costs in areas I can. Thankfully we are still on budget for this flip. However, with more experience I could have gotten more "bang for my buck". You live and you learn!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My great friend Rachel Cheeney in Iowa is an amazing realtor. She is always able to find properties that are tailored to exactly what you're looking for. She is always excited to educate others on the real estate process as well.