First Live in Flip.

[Samuel Carmichael]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $145,000
Cash invested: $7,500
Sale price: $198,000

This was a live in flip house hack me and my son did form 2017-2019. It was a foreclosure that was leaking through the Dining Room Ceiling. I purchased for no money down with RI First Time Home Buyers project and a 20,000 forgivable second mortgage that was forgivable after 5 years. It went down by $4,000 a year.

When we sold I made $35,452 after tax.

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

I didn't have much cash at the time - and I needed something I could FHA into with low money down. It was hard to find a forclosure that fit the bill, but it was purchased with the intent to sell.

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

Vacant for over 1 Year. Bought of MLS with a very very old listing.

How did you finance this deal?

Traditional FHA

How did you add value to the deal?

Paint, Floors, Plumbing, Garage Roof.

What was the outcome?

I made $35,452 dollars after tax.

Lessons learned? Challenges?

Definitely check all windows, ceiling, roof for water damage. Also find problems, fix them so you can make money.