Townhome with basement and an upstairs.

[Barrett Goff]

Investment Info:

Other fix & flip investment in Louisville.

This was a townhome that we purchased, put a little money into for cosmetics and then sold a year and a half later for a small profit.

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

This was a property that we lucked out of, not into, but out of. It was a good home for us to live in for a 1 year stint with a roommate to help us pay the mortgage!

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

This was a nice complex in a good part of town with a lot of space inside the unit, including a basement. It had been sitting on the market for a few months (which is fairly common with townhomes and condos). We came in with a low offer and ended up getting the property for a decent price.

How did you finance this deal?

We used conventional financing with only 10% down which means we had to pay PMI :(.

How did you add value to the deal?

We were able to paint the walls, replace some countertops and replace the HVAC system and get out of there before any other work needed to be completed.

What was the outcome?

We ended up getting our mortgage and PMI paid for every month with the help of a roommate. Luckily we sold the property to a buyer who was desperate to get into this particular complex and was receiving grant money from our state government to cover her down payment. We made about $5k on the sale after everything was finalized.

Lessons learned? Challenges?

Townhomes and condo's can be risky investments since you have to pay an HOA fee each month (if not more for special assessments occasionally), and you may not be able to find someone willing to buy the property for several months. We were fortunate to find the perfect buyer and got out quickly with extra cash in our pockets.

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

Barrett Goff with Family Realty in Louisville, KY!