Live in flip with a VA Loan

[Michael Glaspie]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $144,000
Cash invested: $10,000
Sale price: $189,900

I used a VA loan to acquire a foreclosure. I fixed the property up while living in it. The largest expense was the HVAC system but was able to walk away with a check of over $23,000 after closing.

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

The ability to leverage a no money down approach and complete the repairs at my own pace gave me the ability to learn the in-home repairs at a low cost.

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

Found the deal through the MLS. The Fayetteville market is a treasure trove of VA foreclosure homes. These homes tend to be in decent condition with a fair amount of equity from the time of purchase.

How did you finance this deal?

I used a VA loan.

How did you add value to the deal?

I replaced the appliances, painted the interior, replaces all lighting fixtures and ceiling fans, demolished a secondary deck, landscaped, repainted shutters, and minor exterior vinyl siding repairs with powerwash.

What was the outcome?

Was able to pay off the loan and the credit card I used for large purchases and walked away with a check of over $23,000.

Lessons learned? Challenges?

I learned I can increase the profit margin through a variety of different techniques.

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

Since then I am now a licensed real estate agent in the Fayetteville market and have developed a team to assist investors to find homes, rehab them, and have a property management company screen and place tenants.
My partner Shelby Osborne (Five Pillars Realty) was instrumental in the development of this system.