Single-family residence fix & flip investment in Springfield.
Purchase price: $146,000
Cash invested: $25,000
Sale price: $255,300
My first home, my first house hack! This was a no-rush, boot-strap historic renovation mostly with reclaimed materials and a lot of help from my dad. The house was in decent shape, but this reno included all-new kitchen and bathrooms, some hardwood and drywall repair, a lot of paint, and exterior and landscape work. I embraced that it was a historic home, and focused on cleaning and refurbishing what was there, and replacing only what wasn't original or was damaged beyond repair.
What made you interested in investing in this type of deal?
I needed a place to live! And it was a gorgeous historic home that took a wrong turn in the '70s/'80s. I got to make it beautiful again. And the exit strategies would be that I had a beautifully restored historic home to live in for cheap, or I could sell it at a profit and do it again. There were other exit strategies, but basically, I couldn't see a downside.
How did you find this deal and how did you negotiate it?
This deal came from searching the local MLS, but my real estate agent was able to help me win the bidding war for the property. This was an REO property.
How did you finance this deal?
FHA loan as my primary residence, I think I had to put 5% down with a first-time homebuyer program.
What was the outcome?
The house went on the market and after a bidding war, closed 21 days later $5k over asking. I went from no personal wealth/savings to about $100k to pay off debt and put down on my second home in 2.5 years. Not bad for a side job.
Lessons learned? Challenges?
An investment property can quickly turn into an art project. Keep the to-do list balanced so the end product is attractive for buyers, but remember they also CAN'T see all the really expensive/pretty things that didn't make the final cut. Also, listen to feedback from those around you. You don't have to do exactly what they say, but they might make you think about a challenge differently to arrive at a better outcome.
@Alex Jenkins Nice work, congratulations!
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