First Flip (Live-in)

[Rebecca Thacker]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $79,000
Cash invested: $5,000
Sale price: $165,000

Live-in flip utilizing a construction loan. Small modular turned cabin.

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

At the time, I was in my early 20s and looking for a way to get the most value for my money. This was a great learning experience and helped me find bigger pockets.

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

The property was listed on the MLS and was a foreclosure. We had written an offer and were about to submit when the bank dropped the price to lower than our offer. We came offered the full newly reduced asking price.

How did you finance this deal?

I used a construction loan through a local bank. It was a great option for me as a first-time homebuyer to have a low down payment but the ability to improve the value enough to avoid PMI.

How did you add value to the deal?

I added value by completing a full remodel and sweat equity.

What was the outcome?

I was able to improve my financial position while learning a lot!

Lessons learned? Challenges?

I learned many lessons; however, the one that stands out the most is to educate yourself on exits strategies and investing.

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

Yes, my father Alan Tilson in Lexington, VA a real estate agent was a great advisor. It was wonderful to have someone who knew my abilities and limits. Each time I have purchased a property at least one builder and at least one trusted friend have advised me not to purchase these distressed properties. However, my father acted as my secret weapon and advisor landing me wonderful properties thus far.