Live in flip/house hack

[Laura Dawson]

Investment Info:

Single-family residence fix & flip investment in Eureka.

Purchase price: $195,000
Cash invested: $7,000

1940's cottage style 2 bed, 1 bath home in Northen California. I bought this home as a live in flip with and am finishing up interior and exterior renovations with the intent to sell this June. During my time living here, I house hacked by living with roommates, virtually cutting my housing expense to zero if I average it out over the two years.

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

I have renovated one other house and was looking for a less expensive way to live in California. I realized I could live for free with roommates and force some appreciation if I modernized the home.

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

I used a local Real Estate Agent who found it on the MLS. There were multiple offers on the home, so I offered 5k above asking price with a couple contingencies, such as new roof, covering more closing costs and permitting the newer water heater.

How did you finance this deal?

I used a 0 down VA Homeloan.

How did you add value to the deal?

Updated the inside by adding new closet in one of the bedrooms, updating the bathroom and adding tile, updated the kitchen with new countertops and some new cabinets, new appliances, layed laminate flooring through the whole house and painted both interior and exterior.

What was the outcome?

I'm finishing the last little bit of the remodel now and will be listing in June.

Lessons learned? Challenges?

It is difficult to find roommates who are ok with living in a construction zone. I initially bought this home to be a long term primary residence and didn't run the numbers as well as I could, but due to a strong market I will make some money.

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

Janna Walsh with Mikki Moves was my agent and did a fantastic job helping me purchase site unseen and Tara Johnson with Summit Funding was instrumental in helping me make sure my finances were in order for the VA Loan.