Accidentally flipped my first primary home

[Edwin Morales]

Investment Info:

Single-family residence fix & flip investment in Camarillo.

Purchase price: $225,000
Cash invested: $50,000
Sale price: $335,000

This was my first house and I didn't know anything besides what my realtor was saying. I went in blind. House was a dump but they assured me that it had great potential.

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

I saw the property had great after repair value. I was confident in the contractor.

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

First time home buyer, flipped by "mistake".
Worked closely with contractor, many hurdles and problems along the way. Did a lot of the work myself due to budget constraints.

How did you finance this deal?

203k loan FHA financed and credit cards

How did you add value to the deal?

House was foreclosure and in terrible condition.

Complete gut of kitchen, both bathrooms and knocked down walls. Completely redid deck.

What was the outcome?

Lived in it for a year then sold it for 100k over. Once I received that check, I realized the potential. If I did it by mistake, I could probably do it on purpose.

Lessons learned? Challenges?

Contractor communication issues, basics of 203k. Bank Appraisal issues , How to lay flooring, cabinets, sink

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

Contractor was good for north Jersey area.

Lender and Real estate agent were terrible.