Live in flip that we almost sold for 2x what we bought it for!

[Kendra Ellis]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $87,600
Cash invested: $87,600
Sale price: $167,500

This was our 2nd home that we bought. It was a foreclosure that we bought as-is with no inspections. We turned the water on 2 hours after closing and water was gushing out of the walls. We ended up finding mold under the hardwood and filled an insurance claim that actually profited us $10,000 because we choose to replace it with tile and carpet and keep the hardwood that was good.

We lived in it for 2 years and then sold it with multiple offers the 1st week on the market! Took all the capital gains and invested it into our next house!

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

Our 2 years were up on our 1st house so we wanted to move and capture our capital gains savings.

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

We ended up finding this one because of a buyer (our real estate client) backing out of it and we came in and offer 20k less then list price and the bank accepted it!

How did you finance this deal?

We borrowed private money to buy it then refinanced it.

How did you add value to the deal?

We pulled up the molded hardwood, replaced it with tile and carpet and painted... That was it!!

What was the outcome?

We almost sold it for 2x what we bought it for!!

Lessons learned? Challenges?

Challenges was the water problem but that ended up benefiting us in the long run!

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

Yes, I was the realtor!