All Forum Posts by: Braden Miller

Investment Info:

Single-family residence fix & flip investment in Myrtle Beach.

Purchase price: $78,000
Cash invested: $35,000
Sale price: $151,500

3 bed 1 bath with large bonus room in small semi rural area. Great size lot with plenty of space out back. local industrial plant causing population increase with a lack of inventory. Kitchen and bathroom completely remodeled. The rest of the home was putty, paint, and landscape. Sold in under a week to a single woman.

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

This deal was very cheap to get in.

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

My mom found the deal on the MLS through a realtor in her small town.

How did you finance this deal?

me and 5 of my family members pulled the money together for a down payment and rehab costs

How did you add value to the deal?

kitchen and bath remodel as well as putty and paint to revive the rest

What was the outcome?

house looked great and sold to a single woman moving to the area for a good profit

Lessons learned? Challenges?

the more we tried to fix in the bathroom and kitchen the more we found was wrong. we ended up having to take both rooms down to the studs in order to get them right. Be careful what you dig into if not absolutely necessary. I think we should have explored using the large bonus room to try and make a master suite which would of added value for bedroom count but more so for there being 2 bathrooms or at least have an additional half bath put in.

If you have any cash on hand, you might be able to find a lender willing to lend to you for the investment properties using the equity in your primary residence as collateral. If you cant find a decent HELOC, with interest rates the way they are, your interest rate might shoot way up depending on what you are at currently. If you have a good interest rate right now, it might be better to try to find a lender who will use the knowledge of that equity existing to partially lend against rather than one forcing you to physically pull it out and screw up your primary residence loan terms. You may also be able to find a lender who would loan on a multi family using the rent roll of the property, at least counted as partial income and using your income or person gaurantee as supplimental.

@Hal Thompson have you had any success with this? has the bank worked with you to sell the first mortgage to you at a discount? seems they have no real benefit in doing that if the home is worth more than is owed. Id assume if it wasnt worth more than is owed that you wouldnt of purchased it at the auction. any info would be greatly appreciated!