Single family flip in Hallstead PA

[Steven J Galloway]

Investment Info:

Single-family residence fix & flip investment in Hallstead.

Purchase price: $42,500
Cash invested: $60,000
Sale price: $127,000

1st house, purchased and flipped inside my Roth IRA. No capital gains since all money was reinvested back inside my ROTH. Second flip underway. Purchased for 21500.00

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

Wanted to diversify my investments out of the market, purchase single families and see if I could make some money inside my Roth IRA.

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

Through a local real estate agent foreclosure.

How did you finance this deal?

Cash out of my ROTH.

How did you add value to the deal?

Converted it from 4 small bedrooms to 3 bedrooms, with master bath, redid all floors, bathrooms and kitchen, all new electric and plumbing.

What was the outcome?

Made some money, not as much as I was hoping. Learning as I go along.

Lessons learned? Challenges?

Wasn't planning on replacing all the electric and plumbing. That set me back 10k. Kitchen upgrade also ran over budget by about 2500.00. Kitchens and bathrooms make the difference in the sale !

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

Local real estate agent to buy and sell. I have my contractors lined up to remodel, electrical, sheetrock and paint.