Small profit made just as the housing bubble burst

Investment Info:

Single-family residence fix & flip investment in Saylorsburg.

Purchase price: $200,000
Cash invested: $215,000
Sale price: $225,000

This was a quick fix and flip. Ultimately, we paid too much for it. We didn't do much work, and we were lucky to get out of it with a slight profit.

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

We advertised in the Homeowners' Association newsletter. The owners contacted us. They were slightly behind on their payments, with a tiny bit of equity left.

How did you finance this deal?

One of my business partners took out a mortgage in his own name.

How did you add value to the deal?

We painted the house and added some new fixtures.

What was the outcome?

We sold for a small profit (less than $10,000).

Lessons learned? Challenges?

We paid too much for the house. We were lucky to sell it above what we paid for it.