Falling into my first live in flip.

[David North]

Investment Info:

Single-family residence fix & flip investment in Washington.

Purchase price: $85,000
Cash invested: $13,000
Sale price: $110,000

This was my first property. It was a HUD home that I purchased as a live in flip. I used FHA financing to purchase the property. I had to go through mold remediation and do several repairs before I could move into the property. After moving in a did several improvements. Had a new HVAC installed. Work I did myself: Installed new ceramic tile in the kitchen, basement, and bathrooms; painted; installed new kitchen appliances; installed new garage door; installed new screen door; updated landscaping; replaced water heater; updated bathrooms; added kitchen cabinets. I have many pictures of the renovation process if anyone cares to see them. There are more pictures posted on Zillow: https://goo.gl/SQBomx

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

I was tired of paying rent so I started looking for a foreclosure that I could fix up so my wife and I would have a home to live in when we got married.

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

I found it on the MLS with the help of my realtor and made an offer. Nothing too exciting.

How did you finance this deal?

FHA loan with cash out for repairs...specifically mold remediation.

How did you add value to the deal?

Bought under market value and added sweat equity by doing most of the improvements myself.

What was the outcome?

Put around 3,000 down and got about 12,000 at sale. Reinvested the money in my current property.

Lessons learned? Challenges?

I should have kept this property as a rental. At the time I thought I was making money on this deal, but I really just broke event with all of the money I put into it. I wasn't as aware of the possibilities of real estate investment then as I am now. It was still a great place to live and learn. I put to use many of the skills I gained building and renovating homes with my father when I was younger. I'm ready to bigger and better deals moving forward.

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

My agent was great. Unfortunately she is retired now.