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Updated over 2 years ago,
Getting started: Longest Live-in Flip
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $225,000
Cash invested: $15,500
Sale price: $275,000
The longest LIVE-IN flip in history! Really though, I spent the first 6+ years trying to get my husband on board with investing.
What made you interested in investing in this type of deal?
We were first-time homebuyers and our lease was ending.
How did you find this deal and how did you negotiate it?
This property was listed in the MLS for $234,900. We wrote a letter to seller explaining our circumstances and analysis of comparable sales. They countered and we settled on a sales price of $225,000 with sellers contributing $3,000 towards our closing costs.
How did you finance this deal?
We utilized conventional financing with 10% down. We elected to use a semi-local community bank.
How did you add value to the deal?
We made modest improvements (mostly cosmetic). The last two years we owned this property, we gave it a major upgrade with an upcoming move in mind. Most improvements were DIY and cosmetic only. We added a small retaining wall in front and French drain on side of home for approx. $2,000. We updated (paint, new flooring, new light fixtures, new hardware, new mirrors) both bathrooms for less than $1,000. We re-painted most rooms top to bottom (and painted some trim white from honey oak) and re-did
What was the outcome?
After all expenses paid, we were able to use approx. 40k in equity from this home towards the purchase of our first two doors in Lincoln Park, and we netted approx. 100k to put towards our next big purchase.
Lessons learned? Challenges?
Get started with investing sooner! If starting over, buy a multi-family property as a first home. House-hacking is the BEST way to get started on your path towards financial independence.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, I was not licensed at the time and we worked with Jeanne Tondryk. She was extremely patient.
- Brittany Kuschel