The Live-In Flip / Buy & Hold
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $242,500
Cash invested: $61,989
This is a "live-in flip" I purchased for zero money down with a VA loan. We did a complete rehab and I'll live in the house for at least 2 years before either selling it or turning it into a rental. I estimate the ARV at about $320,000, which was about $72,000 in equity capture.
What made you interested in investing in this type of deal?
I needed a place to live and wanted to capture some equity instead of buying new.
How did you find this deal and how did you negotiate it?
My realtor brought this deal to me.
How did you finance this deal?
VA Loan, 30 yr fixed, no money down, 3% interest.
How did you add value to the deal?
The house was a wreck, almost nothing worked, and we did a full rehab on it.
What was the outcome?
I haven't had the house reappraised yet, but similar homes in the area are selling for about $320,000. But the real outcome was just that I have a really cool place to live now.
Lessons learned? Challenges?
Regarding a large rehab project...There has to be some kind of accountability for your contractor(s) and a written plan that every on the job knows about...everything needs to be tracked and people need to be held accountable, including the budget numbers.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
R.E. Agent Julia Jordan at Keller Williams.
Loan at Gateway Mortgage
Stewart Title Company
