JUST ACCEPTED AN OFFER ON MY FIRST FLIP!

[Brayton Smith]

Investment Info:

Single-family residence other investment in Marion.

Purchase price: $61,595
Cash invested: $11,025
Sale price: $103,500

First flip just accepted offer! This flip wa an (accidental) live in flip. Bought a home that needed some simple modernizing at a great price in a sub-par neighborhood. Lived in for 2.5 years and selling. Will be avoiding capital gains tax by living in and owning for over two years. Taking the profits to invest in building a property which I will also live in for two years and flip and the remainder of the gains will be re-invested into REO flips.

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

Understanding what is a good deal led me to buying a property with easily forced equity!

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

This deal was on the MLS listed at 72,000 I was able to pay 65,000 for this property.

How did you finance this deal?

FHA loan 3.5% down.

How did you add value to the deal?

Paint: $50.00
Bathroom Mirrors: $400.00
Furnace: $750.00
Upgrade Electric Box: $900.00
Washer/Dryer: $1,500.00
Refrigerator: $800.00
Dishwasher: $450.00
Nest Thermostat: $125.00
Vanity Half Bath: $400.00
Water Heater: $1,750.00
Ceiling Fans: $400.00

What was the outcome?

Offer accepted for 103,500!

Lessons learned? Challenges?

Furnace, water-heater, washer dryer all were unforeseen issues. Ensuring that you are not buying a property that will require these essential pieces was an afterthought.

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

Alexis Johnson, realtor in Marion, IN.