My first purchase as a buy and hold, turned flip for huge profits 5 years later.

[David Caradonna]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $193,000
Cash invested: $25,000
Sale price: $410,500

This was originally purchased as a long term hold back in 2018. It was rented out to the same family for almost the entirety of time I've owned it. I actually helped htem find a home for themselves this year and decided to cosmetically update the home. I ended up doing the renovations myself (never again lol) due to difficulty finding reputable contractors. I spent about $25,000, saving over $30,000 from estimates. I finished the home in around 6 weeks working on it nights and weekends when I wasn't at my full time job. We listed at $395,000. We had 7 full price and above offers within 72 hours. We went into contract at $410,500, $15,500 over asking.

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

I knew absolutely nothing about real estate when I purchased this home back in 2018. I just knew it was in decent shape and under my budget of $200,000. That was literally it.

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

On the MLS back in 2018

How did you finance this deal?

Conventional financing.

How did you add value to the deal?

The home was rented out consistently. I then cosmetically remodeled the entire home.

What was the outcome?

A huge payday. It really shows the compounding benefits of appreciation, mortgage paydown, etc.

Lessons learned? Challenges?

Doing the work myself while also working full time was a lot of stress. I did find a great team going forward however.