Investment Info:
Single-family residence fix & flip investment in Yuma.
Purchase price: $157,000
Cash invested: $20,000
Sale price: $210,000
Active duty military family- we figured we were paying rent so why not just buy a home under our normal rental range and flip it? After RE fees on this we put $40K in our pocket. This was our first deal and totally gave me the bug. I knew immediately that RE investing was the way to go for us. We took this 1983 home from pink tile to the photos below.
What made you interested in investing in this type of deal?
We jsut arrived to a new duty station and built a home only 18 months before. We realized that building a home in a place that we were not going to end up in was....less than smart. I could not shake the idea that real estate was the way to go....so I took to google to learn all I could about the best methods to start with basically nothing.
How did you find this deal and how did you negotiate it?
Found this deal online. It was a listed property but we were the buyers in this situation so I was not concerned with agent commission. ALSO, we were brand new to the area so I spent a lot of time looking for an agent that was like minded. We looked for the highest home value areas and then looked for deals in those areas--also made sure that it was in a desirable area for close proximity (but not too close) to military bases.
How did you finance this deal?
We used a VA loan. It was our second time using it so the funding fee was higher but we KNEW we were going to move in 3 years so the clock was ticking and we needed every cent to get this project done.
How did you add value to the deal?
We lived in the home through the whole renovation. It. was. brutal.
My husband is a serious saint. We learned so much and I have so much respect for him...I always did but he is seriously smart and I could have never done this without him.
What was the outcome?
We listed the home for $229K at the request of our realtor (which we used to buy the home so he listed it for 5%). It was unique for the area because it was across the street from a golf course and in a desirable community but it was an older community with newer, energy efficient homes near by. We were on the market for around 80 days. SOLD for $210K. We knew to begin that military buyers would ask for concessions so I planned for that from day 1. I budgeted 10% of the sale price in CC's.
Lessons learned? Challenges?
Lessons- We would have avoided a home with an over- sized yard. It was an after thought....big mistake. It was double the size of the home.
Challenges- Burnout! We lived there so it was hard because we had two small boys.
Know your strengths....plumbing is not ours...also tile. We hate tile.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
We did work with an agent out of Yuma, AZ. Sean Rodgerson.
