My Unintentional Real Estate Investment
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $275,500
Cash invested: $25,000
I'm considering this house as my first real estate investment. My family and I purchased this single family home foreclosure and saw the potential for a large profit with some basic upgrades to kitchen, floors and bath. Our original plan was not necessarily to rehab it, then sell, but to stay there for awhile and raise our family. I started learning about real estate investing a few years ago shortly after buying the house, and thought "oh were doing that".
What made you interested in investing in this type of deal?
I was looking for a property that we could get significantly under market value and could rehab during our stay.
How did you find this deal and how did you negotiate it?
I used a realtor to help locate the deal and with the negotiations. There wasn't a ton of wiggle room in the negotiations due to it being a foreclosure and in a high demand market. All said and done, I feel fortunate to have found such a great deal, even with out the rehab we would have been able to turnaround and sell for a profit. But we used as our primary residence for a few years.
How did you finance this deal?
Traditional 30 year loan with 20% down.
How did you add value to the deal?
Rehabs included:
Backyard wood fence.
New kitchen with cabinets and quartz island.
Hardwood floors throughout the first level.
New carpet.
New fireplace
Kitchen back splash
What was the outcome?
We are listing the property this spring with an asking price of 375,000.