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Updated about 5 years ago,
My 2nd live-in flip experience
Investment Info:
Single-family residence other investment in Saint Clairsville.
Purchase price: $120,000
Cash invested: $30,000
My 2nd live-in flip. Started renting (reluctantly) after moving to Ohio for a job opportunity. Found this property with my wife. Turned into an owner finance through her father. We renovated the home prior to moving in, but still have a few projects in mind. We are planning to sell in the next few years. Between the mortgage pay down, organic appreciation and forced appreciation through renovations, we expect a handsome profit with no tax due!
What made you interested in investing in this type of deal?
Live-in flips are a great vehicle to build wealth behind the scenes. No wasted money flushed away to renting, and no taxes due when it's all said and done. I enjoy the pride of ownership and eventually realizing a nice gain while providing the next owner with a nice home.
How did you find this deal and how did you negotiate it?
Off market deal found by my wife's father. We negotiated a purchase price with the seller and did an owner finance thereafter.
How did you finance this deal?
Owner finance structured with a flat monthly payment @ current market rates. We got a smoking deal and her father makes a small percentage. Win win for all parties.
How did you add value to the deal?
We completely renovated the main level from floor to ceiling and still plan to update the already finished walkout basement. A new roof and paint on the exterior provided a facelift to the curb appeal. The location is also prime for the area.
What was the outcome?
We expect to sell a little further down the road for a large gain that is again, tax free.
Lessons learned? Challenges?
This was a much larger renovation than my first live-in experience. There was more money and time invested and the stress level was a touch higher. But I learned a great deal more from budgeting, to managing projects, to performing renovations myself. Overall a very positive experience.