Live in Fix and Hold

[Donald Eggers]

Investment Info:

Single-family residence fix & flip investment in Redmond.

Purchase price: $340,000
Cash invested: $68,000

PP: $340,000 with $10k in sellers closing costs

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

Low purchase price and owner-occupied loan to keep down payment and carrying costs low to fund the construction costs.
The price and value of the home would hold strong in an extreme market shift (which we could have possibly been facing).

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

Listed on the MLS. There were several offers but I won out because I would take on the terrible tenants. After the inspection, we renegotiated to wait until the tenants were vacated.

How did you finance this deal?

5% down conventional owner-occupied loans.

How did you add value to the deal?

Tore down to the drywall and renovated.

What was the outcome?

ARV is 75k above our all-in-costs.

Lessons learned? Challenges?

The same amount of work would be involved for a deal 3x as large, focusing on larger deals.
Bad tenants will cost you 100's of thousands of dollars.
Business associates make better friends than friends make as business associates.

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

I worked with a friend on my loan and wish I hadn't. I was trying to do him a favor and he ended up being more expensive and making mistakes that cost me $2,700.