Primary to Refi-Cash-Out to Flip!

[Michelle Casillas]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $115,000
Cash invested: $40,000
Sale price: $246,000

This beautiful remodeled 1.5 story home, sits on over 1/3 of an acre surrounded by mature trees is near the heart of Tomball.

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

This was my primary residence in meanwhile I renovated it. I decided to sell it due to the market being at it's peak and needed to move closer into the city. Before that I decided to refinance it and get cash-out at 4.125% used the cash out for renovations.

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

Found it in the MLS, went directly up to the seller and asked to show it, made rapport then brought a pack of six pack of crafted beer. Negotiated all appliance for $1,000 into the deal and made it into a great home! The sellers needed to sell it as soon as possible!

How did you finance this deal?

Bought it with an FHA, home was under market value, appraisal came in higher than we thought, made couple of renovations myself and decided to get a cash out refinance and completed the rest of the renovations myself.

How did you add value to the deal?

Replaced roof with help of insurance money result of big hail storm.
New flooring, painted inside and out, replaced ceiling with wood. New ceiling fans, new light fixtures, new tankless water heater. Painted kitchen cabinets, replaced hardware and front of cabinet doors. Renovated both bathrooms and added built-in closet kits. Lastly cleaned up the yard and cut some trees.

What was the outcome?

Had a couple of hiccups, but took one project at the time.

Lessons learned? Challenges?

Shop around, take your time to obtain bids from different contractors, do not pay in advance!!! Be aware of your recommended contractors always be careful. Also budget for a 5% to 10% increase in case things take longer. You will be fine!

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

I was the realtor, but asked for someone to help with the loan as by law I cannot do both.