First Real Estate Deal

[Jared Martz]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $165,000
Cash invested: $30,000
Sale price: $310,000

Live-In flip. This was my first property I bought, a lot of learning with this project. Most of the work was done by myself and some help from friends/family along the way. Bartering was helpful in this deal as I was young and financially broke. A part-time boss of mine at the time was the contractor who installed my new septic system. I traded him my diesel pick up truck and $5,000 for payment. A good friend of mine spackled the entire inside no charge, I would repay time at his place when needed. Materials were sourced through people I knew as well, friend who worked at a lumber yard, another who owned a flooring company. All in all this was great first deal, I learned a lot of lessons, skills, and knowledge.

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

The live-in flip interested me for many reasons. I knew that I wanted to get into real estate investing but also wanted to live on my own. I had grown up working various general contracting jobs/projects, so I figured I could do majority of the work to save on labor costs.

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

My real estate agent at the time was a family friend, she wanted to help me out as being a young first time home buyer. She introduced me to the sellers of this property before listing it, we were able to negotiate a deal right away.

How did you finance this deal?

FHA Loan

How did you add value to the deal?

Renovated the inside of the house, knocked down walls, relocated entry. Opened up the old layout. New floors, bathroom, drywall, windows were replaced by previous owner. Installed new outdoor siding, front porch/entry way. New septic system.

What was the outcome?

The renovations completed combined with the 2020 rise in the market, the outcome was a success. I walked away with a good amount of equity and a lot of knowledge.

Lessons learned? Challenges?

-Networking goes a very long way
-Doing your homework before starting projects
-Get all permits and inspections needed
-Write lists