Updated over 7 years ago on .
First Time Flipping (couldn't find buy and hold)
Investment Info:
Single-family residence fix & flip investment in Lynchburg.
Purchase price: $154,000
So proud of our first flip! We wanted to continue with the buy and hold but we were having trouble finding the right fit. This cute ranch came up for sale on our road and we jumped on it. The best part is being able to increase the value of our own neighborhood.
What made you interested in investing in this type of deal?
We couldn't find a buy and hold this year that met our criteria. The market was high and purchase prices compared to rentals didn't make sense. But flipping did.
How did you find this deal and how did you negotiate it?
We live on the same road as this house. They placed a coming soon sign and we bought it before it hit he market.
How did you finance this deal?
The mortgage was standard. The rehab was a hard money lender. We did the dequity (shout out to #302). We guaranteed the full money back plus 25% of the profit.
How did you add value to the deal?
We we're the project managers and the labor. Helpful to be married to a handy guy.
What was the outcome?
We are looking at other potential flips!
Lessons learned? Challenges?
It will take more cash than you think.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
We bought the house without an agent but we knew immediately who we wanted to list with. Our agent knows the area but he is also an appraiser and his in-laws have flipped homes. We walked the house with him pre demo. He brought two awesome ideas 1. Add a wine fridge in the built ins 2. Remove the second master closet to extend the bathroom. Having him invested in the property throughout the project literally paid off.
