Updated about 4 years ago on .
Live in flip leveraging debt
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $100,000
Cash invested: $10,000
Sale price: $179,900
Live in flip. Bought and fixed it up over 2 years. Used an fha title 1 loan and cash from a 401k loan. I was cut a check of 48k at closing. 6k was used to pay off a 12 month 0% finance deal on the roof.
What made you interested in investing in this type of deal?
I made 13 an hour for years. Started listening to real estate podcasts like millionaire mindsets, black real estate dialogue, and CC smack. Decided that I could do the same
How did you find this deal and how did you negotiate it?
It was a foreclosure in the hud website. It qualified for 100$ down. 5 minutes from my job at the time. Paid full price which was 100k
How did you finance this deal?
I used fha financing. There was an hud program it was only 100$ down
How did you add value to the deal?
Redid the entire interior of the house. Both baths, kitchen, paint, and roof. A little landscaping.
What was the outcome?
Bought 11/27/2018 sold 9/23/2020. Was cut a check for 48k at closing.
Lessons learned? Challenges?
Besides taking a loan from my 401k I had no idea how was going to finance the rehab. Luckily I searched and searched and found the fha title 1 loan.
I want through a couple contractors. My best friend essentially saved my project with his finish work. He’s also a general contractor.
Pro tip. Reach out to people in your circle to help you. If we look deep we know people with a wide array of skills