First Fix and Flip- holding as primary for two years

[Chase Lage]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $310,000
Cash invested: $65,000

Purchased at $310,000 off market. Anticipating $70K invested. Should be able to sell for $525K. Bought as primary. Fixing while living in it. Will hold for two years to avoid capital gains.

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

I was looking for my first fix and flip deal. This one came up immediately next to my other property.

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

My neighbor passed away and children lived out of state. It was a good property but it had not been updated in a long time, it was smoked in, and the landscaping was in disrepair. I offered well below market value but with no repairs, and allowed an open end close date so the family could take their time getting things auctioned and taken care of.

How did you finance this deal?

Next to my other property.

Lessons learned? Challenges?

As always, on the first fix and flip, things take longer and are more expensive that you originally plan for. If I do a fix and flip again, I will be sure to walk through with my contractor to get a more accurate plan and idea in place before jumping in. It was still a great deal even though my plan for initial investment was lower than what I will have in to it.