1st time home buyer FHA live in flip

[Eric Maxwell]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $140,000
Cash invested: $24,000
Sale price: $220,000

I knew from the start that I was going to buy this property.

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

The neighbor was the hottest in the twin cities and this house has 83 businesses cards of realtors who showed the property. It was in the market for 283 days before I bought it.

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

I found it but reverse engine my own search. I figure the properties on the market the longest are the hardest to sell for some reason.. overpriced, ugly, other issues..

How did you finance this deal?

FHA loan through my mortgage broker associates.

How did you add value to the deal?

I upgraded the “bones” of the property and the cosmetics. Carpet throughout (as Minnesota gets frigid in the winter)

What was the outcome?

83k profit

Lessons learned? Challenges?

For this to be my first deal I was applauded at the closing for “not making any mistakes”. Honestly I researched real estate topics for 7 years before this purchase. The year of the purchase I saved money like a madman and saved roughly 22k. My sacrifice… no haircuts and no fast food. 1 job full time, 1 full time side hustle. 0 debt at the time other than student loans.

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

I did but each company I worked with has been bought or sold since then.