Second Investment - Cayenne Home

[Joe Muir]

Investment Info:

Townhouse fix & flip investment.

Purchase price: $193,000
Cash invested: $25,000
Sale price: $277,500

My second investment was also a fix-and-flip. Once again, my wife and I lived in the home while preforming all the renovations. We sold this unit to move into a single family home.

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

Palm Beach Gardens is an excellent place to live. It was very difficult finding a townhouse under 200k.

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

We found this home on Zillow. Negotiations were very minimal. The previous owner did not want to sell and tried to back out of the deal a few days before closing.

How did you finance this deal?

Used proceeds from previous home. We put 10% down using a conventional loan.

How did you add value to the deal?

We updated the kitchen, bathrooms, flooring, garage, stairs, trim, hand rails, window sills and lighting. We also removed popcorn ceiling and applied knockdown on the walls and ceiling. We tiled the back patio and added turf to the back yard. With a fresh coat of paint and updated land scape it was ready for sale!

What was the outcome?

We had a net profit large enough to invest into a single family home and renovate. This improved our quality of life while growing stronger equity.

Lessons learned? Challenges?

This would have been a great investment property. If I knew what I do know I may have been able to hold onto the property and still purchase a single family home.