The Live In Longterm Flip

[Michael Robinson]

Investment Info:

Single-family residence buy & hold investment in Lithonia.

Purchase price: $62,000
Cash invested: $7,000

I was able to purchase the house on foreclosure several years back. Since I've updated everything except for the upstairs bathrooms.

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

I was fresh out of the military and moving back home, I knew I would need a place to live. I knew other investors were getting houses in Atlanta around 30K which was an unbelievable deal. This particular property had a personal meaning to me as I grew up just down the street when I was younger and the neighborhood was the top of the line back then. I knew the neighborhood would hover around 200K normally so I took a shot in the dark and what do you know. Houses are starting to sell around 190K.

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

I found this deal on MLS back in 2013-2014. There were plenty of foreclosures to choose from back then. I originally lost the bid I placed on the house but after a week or so, I got a call asking if I was still interested. The winning bidders financing fell through and I was next in line. Pure luck if you ask me.

How did you finance this deal?

It was a cash deal so I dug deep in my savings from deploying in 2012 and borrowed some money from family.

How did you add value to the deal?

Soon as I purchased I gutted the old 70s kitchen and installed hardwoods and tile on the main level. Along with repainting cabinets and installing new appliances.

What was the outcome?

I live the house today but I've been working on converting the full 1100sqft basement into a 2 bedroom apartment. I'm not sure if I will just rent it long term or short term.

Lessons learned? Challenges?

I've learned how useful the buy and hold method can be. Also, working with local enforcement to code the basement for living has been an experience I won't forget.

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

I did have an agent that helped me put in the bed and showed me other foreclosed properties but on this deal, I did all the leg work. I just needed the agent to submit my bid and let me in the house. I located the property ran the numbers to see if it made sense on my own.