Live in Flip in Sonoma, Ca

[Molly Arnott]

Investment Info:

Single-family residence other investment.

Purchase price: $186,000
Cash invested: $100,000
Sale price: $515,000

This house was in BAD shape, bank owned, and no bank would loan on it because the well and septic were shot. We were young and stupid and just got lucky with so many things about this house. We lived in it while fixing it up and planned to remain in it as our family home but circumstances changed and we ended up selling it for a great price and buying into our next property.

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

We were getting married and starting to think about kids, I knew we'd need a family home and this was the only way we could afford to do so.

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

Found it on the MLS and contacted an agent.

How did you finance this deal?

Originally we borrowed $240k from my Grandma and then repaid her (with some interest payments) 9 months later by doing a refi.

How did you add value to the deal?

What did we not do?! This place was almost a total gut. We ripped off the "indoor jacuzzi room" and breakfast nook because they were horribly done additions that were already falling off the house. Everything was new.

What was the outcome?

Great 4 bedroom 2 bath family home that we sold for a great profit.

Lessons learned? Challenges?

I would definitely buy REO again, I enjoyed taking the house no one wanted to touch and making something beautiful out of it. Financing was a challenge but we got lucky with the right family member in the right position at the time.