Small Older Home is a Lake Community

[Denise Tinsley]

Investment Info:

Single-family residence fix & flip investment in Wappapello.

Purchase price: $20,000
Cash invested: $45,000
Sale price: $94,000

The home was built in 1960 as a lake house and is in need of a complete remodel. All major systems will be replaced or upgraded (HVAC, Roof, Electric, Plumbing, Insulation) as well as interior remodel.

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

My partner and I wanted to learn to flip a home so we wanted to start small.

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

We found the home on auction.com. We did not negotiate, we went through a bidding process.

How did you finance this deal?

Personal savings (cash) for the purchase and HELOC for the remodeling expenses

How did you add value to the deal?

We have experience in improving modest homes, usually our principal residences. We both understand the specifics of the area the home is located.

What was the outcome?

The remodel is still in progress.

Lessons learned? Challenges?

Assume all expensive systems will need replaced when purchasing an older foreclosed home.

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

No