Positive Experience as a First-time Flipper

[Deborah Fischer]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $38,000
Cash invested: $43,000
Sale price: $143,000

1900 build; largest expense was drywall retexture. Me and two friends did the majority of work interior and exterior. Market value was 50s prior to my completion of this property. We are the highest for size in this community-raising the neighborhood value here in spite of a predominant, wholesale tax redemption market.

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

No real retirement to speak of and health problems. Needed some $$ in the bank and cannot work traditional employment (can't sit or stand for long periods). I needed a flexible schedule so took out some of my home equity and moved to another state having more homes under $50k derived from internet searches.

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

Every property (4) I purchased in the first 8 months I personally found on Zillow.com or Realtor.com and called an agent to show me the property.

How did you finance this deal?

Cash-out refi.

How did you add value to the deal?

Nearly complete reno interior and exterior: new paint, flooring, appliances, lighting.

What was the outcome?

Almost $50 profit and sold in less than 24 hours as the highest priced home in the community this year under $1600 sq. ft.

Lessons learned? Challenges?

Don't listen to others opinions of others (when making design/reno decisions); instead do the research in terms of market value in and the the factual information provided by industry experts. EVERYBODY has an opinion and has different tastes. Had I listened to others telling me I was over-improving I wouldn't have done as well. I strove to be the highest single-family sale in the community.

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

Learned more about who I WOULDN'T work with again rather than who I WOULD but ultimately found a reputable and knowledgeable RE agent to whom I would refer.