Updated primary residence, lived in 2 years, sold for $140k tax free profit.

[Michael Castro]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $180,000
Cash invested: $310,000
Sale price: $450,000

My wife and I purchased this home and renovated as our primary residence. Enjoyed it for 2 years and sold for a $140k tax free profit.

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

Tax free profit, and getting to update the home to our taste.

How did you finance this deal?

Cash and then 5% down conventional once renovation completed.

How did you add value to the deal?

Renovated the entire home.

What was the outcome?

$140k tax free profit.

Lessons learned? Challenges?

Because we renovated as a primary, we had little regard for the budget. Our primary concern was to make something we could enjoy, profit was secondary to our enjoyment. This has been the same every time we've renovated since.

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

I am the agent.