Flipped a house as a college freshman

[Mackenzie King]

Investment Info:

Single-family residence fix & flip investment in Fort Smith.

Purchase price: $67,500
Sale price: $135,000

Single family home in great neighborhood was halfway renovated when a divorce drove the owners to liquidate. We refinished hardwoods, added carpet, completely redid the kitchen, light fixtures, and painted the interior and exterior.

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

The home was halfway renovated already and had been sitting for awhile, so it looked like it was abandoned and no one wanted it. It was in a very desirable area, so the market supported it's improvement more than the cost of the actual improvement.

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

MLS; I am a Realtor

How did you finance this deal?

100% bank financing including improvements. The appreciation of value in sweat equity was counted towards my down payment.

How did you add value to the deal?

Repaired failing floor joists, complete kitchen remodel...paint etc.

What was the outcome?

Nice profit at the end of 20K or so.

Lessons learned? Challenges?

Don't over improve a property in an area if you aren't willing to wait for top dollar sale price.