Live and Flip/House Hacking in PA

[Olivia Pannabecker]

Investment Info:

Single-family residence other investment in East Norriton.

Purchase price: $110,000
Cash invested: $20,000

This home is my primary residence and I've been employing the Live & Flip method for the past two years. It's a 3 br, 1 ba semi-detached home built in 1910 with a finished attic and 2 story oversized 1 car garage. I'm now interested in getting into house hacking. My plan is to house hack for another year, then sell this home, and start the process all over again in a better market!

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

I knew I always wanted to buy rather than rent so that my money was going towards something. Every home my family has owned has been a "fixer-upper" with instant equity so it seemed natural, and almost expected of me to do the same. I think I'm better suited for the Live & Flip method because it provides a bit more time to really think through your scope of work and design choices, whereas with a Fix & Flip, there's much more pressure on the timeline and budget.

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

I found this deal on the MLS through a real estate agent. An elderly woman's family was selling it for her, the home was vacant for approximately a year, and MANY of her unwanted belongings were left behind. The house had already been sitting for about 3 months on the MLS and was reduced to $115,000 when I found it. I offered $110,000 with a contingency of cleaning out all the stuff myself.

How did you finance this deal?

A traditional mortgage.

How did you add value to the deal?

Renovated every room myself, with help from family! Wallpaper removal, carpet removal, refinish original hardwoods, etc
Bedrooms - new drywall, paint, trim, carpet
Bathroom - gutted and added new everything with vinyl plank floors, shower niche, recessed lights, exhaust fan
Kitchen - refinished original cabinetry, added new cabinetry, granite countertops, subway tile backsplash, open shelving

What was the outcome?

To be determined! I'm extremely happy with how the renovation turned out and all the experience I've gained along the way.

Lessons learned? Challenges?

Expect the unexpected! After moving in, we discovered the previous electrician updated all the visible wiring in the basement, but left the knob and tube live in the walls to almost every outlet, light fixture, switch, etc... This wasn't caught on the home or U&O inspection. Also, with the live and flip method, be prepared to be camping in your home for a few months! The renovation process is by no means glamorous but keep looking towards the end goal.

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

Since buying this home and developing a passion for real estate, I've become a licensed real estate agent! I specialize in assisting investors like myself as well as first-time home buyers in the Chester, Montgomery and Berks county areas, which is where I work, live and grew up. Feel free to message me with any real estate needs or to just talk investing!