Single Family Remodel House Hack

[Josh Williams]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $35,000
Cash invested: $20,000
Sale price: $71,000

I bought this house to live in when i was 22 because my lease was almost up on my apartment. It ended up taking a little longer to close and I ended up closing the day my lease ran out, so I moved all my stuff (which wasn't very much at the time) into this house which had no heat or hot water and it was October in upstate NY. Luckily I went to college for HVAC and Plumbing so I quickly installed a new boiler and baseboard, hot water heater, and all new plumbing in the whole house. Then kind of went room by room and fixed it up after work and weekends over the course of 4.5 years while I lived there for nothing because the cash flow from my 3 family paid the mortgage.

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

It was cheap and I didn't have a lot of money

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

It was across the street from my friends house and we were sitting on the porch one day enjoying a frosty beer and it was just sitting there looking at me asking for me to buy it. This house was owned by siblings and it sat vacant for a couple years so I was able to pick it up pretty cheap because it needed a bunch of work.

How did you finance this deal?

Went back to my trusty friends at the bank and they gave me more money. 30 year FHA fixed Int. Rate Loan

How did you add value to the deal?

Sweat Equity on top of Sweat Equity

What was the outcome?

House came out nice and sold it to a lovely older couple who still live there today

Lessons learned? Challenges?

Don't bite off more than you can chew
Don't be afraid to ask for help
Pizza and Beer is a great payment method