Updated about 4 years ago on . Most recent reply
Cincinnati OH (Madisonville) Live-in Flip/BRRRR
Investment Info:
Single-family residence fix & flip investment in Cincinnati.
Purchase price: $155,000
Single Family Live-in Flip
$155k Purchase + $50k Rehab = $205k Project Cost
$250k Appraisal
$200k refinance mortgage
What made you interested in investing in this type of deal?
This was a live-in flip that my fiancee and i completed. My reason for this type of deal was to gain additional flipping/rehabbing experience while mitigating the risk with it being a property that we were going to live in.
How did you find this deal and how did you negotiate it?
MLS - listed i believe at $172k and purchased for $156.5k. Small structural issues that came up during inspection which had scared off previous buyers, allowing us to negotiate hard on the price.
How did you finance this deal?
5% down conventional loan and then cash for the rehab
How did you add value to the deal?
Gut down the studs remodel. Remove 2 first floor walls with engineered headers and added a half bath on the first floor.
What was the outcome?
Appraised at $250k (probably would be $265k by now).
Cash-out refinance at $200k
Ended up with about $5k left in this property.
Lessons learned? Challenges?
The biggest challenge on this property was the budget - being as it was a property that we were living in we ended up doing things that i wouldn't have done otherwise / would have done them in a more cost efficient manner.
Learned how to schedule and manage subcontractors as i was doing about 75% of the work on this property myself and subbing out trades (plumbing, electric, drywall, HVAC).