First flip - I learned so much doing this.

[Steve Iacobbo]

Investment Info:

Single-family residence fix & flip investment in West Greenwich.

Purchase price: $75,000
Cash invested: $15,000
Sale price: $129,000

This was my first flip. A small, single family home near a lake. One bedroom and a loft area on the second floor. Bought by a single dad with a 3-yr old son.

I'm currently working on my 4th, which will either be another flip or a buy-and-hold.

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

I was a bit intimidated with the whole "real estate investing" thing but this was a simple project that didn't seem overwhelming.

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

I have a great realtor who is also an investor. He's acting as a mentor while I learn the ropes.

How did you finance this deal?

This was financed via money from my HELOC and with the help of a hard money lender.

How did you add value to the deal?

The house was partly done, but the owner did not want to finish it. I bought the house and finished the rehab.

What was the outcome?

A very nice, newly updated small home by a lake.

Lessons learned? Challenges?

I learned a LOT about how to get money, the paperwork that's involved when dealing with certain types of lenders and that it's important to have a team of people (realtor, attorney) helping you through and explaining the parts you don't understand.

The challenge was estimating the rehab costs (went a little over) and making sure contractors keep to a time table.