Ray St. Primary turned fix and flip

[Ryan Davidson]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $127,000
Cash invested: $40,000
Sale price: $170,000

3/1.75 with large 4 car garage. Kitchen and both baths completely remodeled. New paint, updated electrical, and plumbing, refinished all hardwood floors and new trim.

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

Originally purchased for primary residence

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

We missed it originally and it had multiple offers, fell out of contract and our realtor called us before she told the sellers that if fell out. We viewed it and offered what there previous agreement was to keep it from opening up to the public again.

How did you finance this deal?

Local bank, 5% down, 3% fixed 30 year mortgage. Used our own cash to remodel.

How did you add value to the deal?

Complete remodel to kitchen and both baths, new paint, updated electrical, plumbing and trim. Refinished hardwood floors.

What was the outcome?

Sold for a loss of about 5k after we decided it wasn't going to be a good fit for our primary residence.

Lessons learned? Challenges?

Do not buy a house and remodel with your wants and needs, unless you are sure it is perfect for you. We would have saved money going into it as a flip instead of primary and using custom cabinets and bathroom finishes.

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

The Real Estate Shoppe in Kentland, IN.