From Non-livable Condition to Profit

[Lex Goretoy]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $35,000
Cash invested: $30,000
Sale price: $150,000

We purchased the property knowing it had all sorts of damage. From water, to termite, to theft. There was a lot of rehab work that needed to be done, especially replacing the termite damage.
I've learned that it can be more work than what you think it may be if you don't have a good idea of what it would take to replace and repair certain things.
We ended up refinishing everything and it turned out to be a great home.

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

It was a bank foreclosure without any tenants.

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

Through MLS and we offered a cash price.

How did you finance this deal?

Cash and borrowed equity against a property we lived in.

How did you add value to the deal?

Sweat equity and repairs.

What was the outcome?

We made money and flipped it into another property.

Lessons learned? Challenges?

Take at least a second look before going in on the deal.

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

I am a licensed agent and offer people a 1% rebate that use me to purchase investment properties.