Sweat Equity property with Flipping potential

[Demetria Aldridge]

Investment Info:

Single-family residence fix & flip investment in Charlotte.

Purchase price: $135,000
Cash invested: $5,000

I bought this property with the intention of putting some sweat equity in. I have done a Cash out Refi to complete the work I wanted completed and pay off all my debt. Currently, I am renting the property. I don't have much cashflow because I am helping someone out, but I don't have any out of pocket. I have about 25,000 to 30,000 equity in the property. I am letting the tenant pay down the mortgage for now. I owe 147,000 currently. My plan is within the next year reinvest some of that equity into another property to fix and flip. This is my third home I have had. I am realizing the power of leverage and creative financing for future deals. Looking to connect with anyone with the same goals in Real estate.

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

I like Single Family Homes. I believe they have more bang for the buck for now. My goal like many is to find a duplex or fourplex to invest in.

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

Looking at other homes in the area I found this one for sale by owner. I did a FSBO which is my second. Saved money on cost and beat out the competition. There was some work that needed done but I saw the potential. I went into it with the mindset that it was a Investment that's it. It made sense.

How did you finance this deal?

I used my VA Loan $O down. Paid maybe $1500 to close.

How did you add value to the deal?

New Wood Laminate flooring, added tile in bathrooms, new fridge, stove, dishwasher, sink, toilets.. Power washed, painted and cosmetically I removed the popcorn ceiling throughout the house.

What was the outcome?

I have a home I could sale today and make money off of. Someone is paying down my mortgage every month. I have equity in it that I can capitalize on. I feel good putting some of the knowledge I have learned from years of listening to others and I am looking forward to many many more. I also am pursuing my Real Estate License to save money on any other potential sales.

Lessons learned? Challenges?

Learned that it is not always practical to do everything. I outsourced some of the work. Learning my limitations.