1 SFR flipped and made into rental, lot of learning

[Tim Walsh]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $37,000
Cash invested: $15,000
Sale price: $80,000

Bought a pretty rough 3 bed, 1 bath house.
Rehab included, new roof, replacing bathroom and kitchen, adding 1/2 bath, new window.

Bought to rent to family who were in a pickle. That worked out until their situation changed due to a car accident and they needed a 1 story.

Ended up selling after they moved out.

Bump in the rode was listed and then heavy hail storm which damaged siding and room. Delayed sale for months.

All in all, worked out well.

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

I had a family member needing a place and we figured a win-win for everyone.

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

MLS and then low offer.

How did you finance this deal?

1 year loan with local bank.

How did you add value to the deal?

Lot of improvements.

What was the outcome?

Good -

Lessons learned? Challenges?

One thing that I remember was that the company doing the siding removed the gutters when doing the siding and then wanted to charge me for adding new gutters or re-installing. It was an outrageous request and I refused. They ended up doing it for free but if they hadn't, it would have slowed work down and added to the bill.

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

Chad, Judy and Karen Doyle are the best in the business - would refer them to anyone looking for an agent.
http://www.metroeastrealestate.com/