Live and flip | Hyde Park, Tampa FL

[Stephen Counts]

Investment Info:

Single-family residence fix & flip investment in Tampa.

Purchase price: $185,000
Cash invested: $3,000
Sale price: $250,000

Live and flip. Purchased from a bank REO department.

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

Location was incredible.

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

Found it on the MLS. There wasn't much negotiating due to the seller working for a bank REO group.

How did you finance this deal?

FHA 97% LTV

How did you add value to the deal?

Mostly cosmetic. Replaced landscaping and installed sprinklers. Repainted cabinetry and all walls. Repaired sink and bath hardware.

What was the outcome?

On the overall project we made a 33% profit in less than two years. However, with the FHA loan my wife and I only put up $5,550 for the down payment and invested $3,000 into the property. This resulted in a 8x multiple on invested capital.

Lessons learned? Challenges?

We ended up paying over asking for the property. However, we new the REO department had the property undervalued.

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

Stefanos August sold the property and did an excellent job!