Live in Fix and Flip Cabin

[Mason Jeffries]

Investment Info:

Single-family residence fix & flip investment in Big Bear City.

Purchase price: $119,000
Cash invested: $7,000
Sale price: $139,000

Although I did not know it at the time, this was my first and only house flip. I bought this cabin in the mountains for my mother. She lived there for less than two years. I converted the house from propane to natural gas, built a deck, replaced some fencing, and painted the outside. We didn't make much on it but it was the best option at the time and a great learning experience for me. Looking back it at now I wish I would have held onto it and made it a short term vacation rental.

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

It was not intended as an investment at the time. It was an affordable option for my low income mother and I made it happen for her. Although if i would have had the same mindset i have now a few years ago i would probably still have it.

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

MLS

How did you finance this deal?

FHA Mortgage

How did you add value to the deal?

I made a bunch of repairs. The house was not up to code when we purchased it. I also made some upgrades like a deck in the back yard, painted the outside a more appealing color, converted the propane heat to natural gas, rebuilt the gates and some fencing, and a few other minor items.

What was the outcome?

We sold the home and made just enough money for a house hacking situation for my mother. She used the profit to buy a large trailer which she lives in on my in-laws property for next to nothing. They did not hit us with capital gains tax because she was the primary resident and had a low income.

Lessons learned? Challenges?

-Should have kept it as a vacation rental. It is a cabin in a popular southern California mountain resort town.
-Don't trust everything the buyer discloses, or doesn't disclose. There was so much not to code, it would have been impossible not to know about it.
- Finding good contractors! I did a ton of work myself, but we had to hire a guy to install the gas meter and it was not a good experience.