First official investment under newly formed LLC was a complete success!

[Kellie Powell]

Investment Info:

Single-family residence fix & flip investment in Roundup.

Purchase price: $95,000
Cash invested: $84,000
Sale price: $255,000

This was a private sale from a family who's parents passed away and they were looking for cash buyers. This was our first official purchase and sale with our newly formed LLC. We gave the entire house a facelift, including adding A/C to a 100 year old house! In the end, we had multiple offers and sold as quickly as we anticipated! The family we bought it from thanked us for brining the house "back to life" so a new family could enjoy it for another 100 years!

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

Word of mouth. Someone who knew someone selling also knew we were looking for an investment property.

How did you finance this deal?

We purchased with cash and part of our personal HELOC. We got a capital loan to fund the rehab as well as a Lowe's credit card. A private investor paid the holding costs.

How did you add value to the deal?

Foundation work, new roof, added a bedroom, removed old boiler heat, all new HVAC, new kitchen and appliances, removed wallpaper and old cat urine soaked carpet and subfloor, paint on every surface, added a soaking tub to the master bath.

What was the outcome?

Success! My husband, who did 90% of the labor gained more experience and more confidence. We used the profit to reinvest in our next project 2 weeks later.