Updated about 7 years ago on . Most recent reply
My first flip back in 2010
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $84,000
Cash invested: $124,000
Sale price: $227,400
Flip #1 in Northeast Minneapolis, MN
What made you interested in investing in this type of deal?
It was so cheap, I figured I couldn't lose. Had good bones with the foursquare design and four bedrooms on the main level.
How did you find this deal and how did you negotiate it?
On the MLS. There were multiple offers and it was bank owned. I was a licensed agent at the time, so I negotiated the deal myself.
How did you finance this deal?
I saved up $30K over a year, took out a HELOC on my primary residence for $35K, and borrowed the rest from my grandmother for a low interest rate. Took every penny I had to the closing table and got the keys!
How did you add value to the deal?
Full remodel.
What was the outcome?
Excellent. I made a little over $80K although it took 10 months of work and lots of the labor myself.
Lessons learned? Challenges?
It was my first flip, so I could write a book on the challenges and lessons learned. Hire out the work if you can afford it!
- Gus Muller
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