First investments ups & downs

[John Silva]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $150,000
Cash invested: $50,000

Total rehab, down to the studs. The house had no insulation and one broken heater due to not being winterized. This is a single family home. 3 bedrooms, big dining area and living room. Small kitchen and bath. 2 car driveway and small yard. Bonus the house has a working central air.

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

The price and location.

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

Found the deal via MLS website as I am a real estate agent. Negotiate the price down $10k.

How did you finance this deal?

Private investor.

How did you add value to the deal?

New : roof, walls, ceilings, kitchen, bath, electrical, floors, paint, insulation and landscaping.

What was the outcome?

Still work in progress. Spent $27k of $50k budget.

Lessons learned? Challenges?

Lessons learned: Leave the skills work to the professionals. DIY for my first set me back $3k , 3 weeks and my valuable time.
Challenges: Finding honest contractors and people willing to work. I did get 2 - 3 quotes from contractors and I'm glad I did. It saved me thousands and the contractors that I hired are great.

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

I'm a real estate agent.