Our first fix and flip

[Casey Murphy]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $48,000
Cash invested: $50,000
Sale price: $125,000

This was a small 3 bed 2 bath in the small town I live in.

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

I wanted to make some cash to pay down my mortgage and increase my borrowing power in my HELOC. Also it was nice that it was 2 miles from my house.

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

I was the only person to bid on this house at sheriff sale. I had to bid 1 more dollar than the opening bid.

How did you finance this deal?

I bought the house with a heloc. My parents applied for a personal loan. Towards the end when were running out of money we borrowed 10k from my grandparents and paid them back 11k.

How did you add value to the deal?

We made it look brand new.

What was the outcome?

I made about 17k. My parents did too.

Lessons learned? Challenges?

I agreed to sell for 125k but it appraised for 130k after the fact. So I sort of beat us out of 5k but then we didnt have to oay anything at closing.

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

Our lender was colfax bank and I would definitely recommend them.