Long Flip in Endicott

[Ron West]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $52,000
Cash invested: $20,000

Originally bought this property as a flip, but the seller wanted to rent from me. Will renovate in the late winter and put it on the market for sale in early Spring.

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

The appraised value of the property was twice the purchase price. In addition, the house is in good condition with only a few updates required to sell on market.

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

I used direct mail marketing. This lead came from a delinquent tax list.

How did you finance this deal?

Used conventional financing to purchase the home. This is my first flip so I wanted to make sure that I would not be in a time crunch with a hard money loan.

How did you add value to the deal?

I purchased the property at a low enough price that there was tons of equity. Adding in a light reno will force appreciation even higher. However, with the upturn in the market, the property value has jumped to over 150% of the purchase price without any reno.

What was the outcome?

Still renting the property until the Spring of 2022. At that time, I will complete renovations and sell.

Lessons learned? Challenges?

Showing compassion and empathy to a people is more valuable than the profit you will make. I had planned to complete the flip and sell it this year but the seller was not able to move. I am renting back to them under market rent but I am still receiving good cash flow. As a result, the sale of the house will occur after 12 months of ownership (so no long-term capital gains for me).

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

N/A