Live In Flip and Sell #2

[Nick Belsky]

Investment Info:

Single-family residence other investment.

Purchase price: $205,000
Cash invested: $22,000
Sale price: $275,000

The entire first floor was a gut job on this house. All work completed by me unless noted:

Hand Built Cedar Fencing
400sqft Stamped Concrete Patio - Contractor
Covered Patio
Exhaust Hood over Stove
Over 2000sqft of 14mm Premium Laminate
Floating Vanity and Plumbing to Master Vanity
Granite Counters in Kitchen and Bathrooms - Contractor
Electrical Work Throughout House
Smart Switches and Devices Throughout
Painted Whole House In / Out
Sprinkler System Repairs and Upgrade to Smart Controller

What made you interested in investing in this type of deal?

After the success on deal #1

How did you find this deal and how did you negotiate it?

Standard approach to finding Primary Residence

How did you finance this deal?

FHA Financing

How did you add value to the deal?

All the repairs and upgrades to the home. Lots of work on this one!

What was the outcome?

We had a buyer who was VA and we had a sale fall through due to VA Appraisal coming in nearly $30k under sale price. Both Realtors felt like we were getting a bombed appraisal. Relisted on market and had three more offers in 2 days. Conventional Financing on new buyer, appraisal went off without a hitch.

Lessons learned? Challenges?

Understand the differences in appraisal methods between FHA, VA, Conventional, and Investment properties better. I found gaps in knowledge and expectations of the VA Appraisal processes.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Absolutely! Same Realtor I worded with on deal #1. Many of the same contractors too.