1st investment renovation home

[Danielle Hammond]

Investment Info:

Single-family residence fix & flip investment in Gwinn.

Purchase price: $45,000
Cash invested: $10,000

Currently living in house- market value $85k

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

Low money down, low monthly payments, nice family home and street

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

Foreclosure, listed for over a year. I low balled- it didnt work and I played near full price. Still a good deal

How did you finance this deal?

FHA 203k

How did you add value to the deal?

Finished a bathroom that was gutted. Sanded and finished original wood floors (1905). Updated kitchen counter, appliances and flooring. Paint and some bedroom carpet.

What was the outcome?

House is great! We were very lucky on a lot of aspects. Like previously updated wiring and metal roof.

Lessons learned? Challenges?

Lending was a challenge - but worked.
Living in a demo with kids is hard.

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

This was the first deal I did once i earned my real estate license and represented myself. I would recommend myself to everyone I know ;)

[Danielle Hammond]

@Anthony Katsonis the 203k process was AWFUL!!! took us 100 days to close. I read about it in the bigger pockets book, then reached out to every lender up here - Either they had never heard of it, or told me it did not exist. I decided to do a google search to find a lender that did them instead of local. I found one in Florida, huge mistake. They were ordering appraisers from 10 hours away, everything took way longer than it should have. I needed a licensed contractor to do all the bid work, and they were all over priced. Painting and sanding floors isn't something you need to hire out, but bank required it. They even required a lead paint certified painter to go over any chipping (we don't have any up here... I had to pay for my contractor to take an online test LOL!) . Bringing a house to FHA standards is fine and I get it, but I can paint my own door trim. LOL!!! It was a pain- but it worked, and I learned SOO SOO SOO much from it. The value of the people I met and the things I learned was worth more than the equity we built in our home. ALSO NOTE!---- ONLY $1,000 of my OWN personal cash was used for closing costs. The 10k was all borrowed and rolled into the mortgage. I did not have 10k on hand.