My First Deal: Rental Turned Fix & Flip

[Desirae Coleman]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $15,000
Cash invested: $18,000
Sale price: $35,000

My original plan was to rent out a small 2bd/1ba property once remodeled. I was able to fund a complete bathroom renovation, brand new plumbing, new flooring throughout, new drywall & insulation, and upgrades to the kitchen, but I struggled to find consistent contractors to finish the house. WIth major life changes coming, I decided to sell the property before completing the remodel to make a small profit.

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

I have been interested in real estate for a long time, and honestly just wanted to make a deal to better understand the process. I wasn't focused on it being perfect.

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

I had the opportunity to invest in a 2bd/1ba residential property owned by a family member through seller financing.

How did you finance this deal?

I was able to make small payments on the property while investing in the remodel out of pocket.

What was the outcome?

I was able to sell the project to someone looking to downsize that was eager to take over the final cosmetic renovations to make the property their home.

Lessons learned? Challenges?

Don't jump head first into a fix. Evaluate the situation before putting money into it.

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

We worked with Western Illinois Title Company for the real estate closing and they did fantastic job helping us get through the FSBO process.