Our first "Live-In Flip"

[Chris Walker]

Investment Info:

fix & flip investment.

Purchase price: $130,000
Cash invested: $60,000
Sale price: $282,000

This was a "Live-in Flip." 3/2 with a bonus room. We bought it cash with help from a family member. We (my wife and I) did most of the labor ourselves. It took us 18 months of working nights and weekends. We completely gutted the house down to the studs. New roof, new windows, new a/c unit, new water heater, 2 new bathrooms, new kitchen cabinets with granite counter tops and stainless appliances. New tile throughout most of the house and laminate in the bedrooms. New recessed LED lighting in the living areas and kitchen.

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

I'm very handy because I have some experience in construction. Was looking for a house to live and fix up. I bought the worst house in the nicest neighborhood.

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

It was a cash only deal on the MLS. It was sitting for a long time and they kept lowering the price. There wasn't much back & forth negotiation because I knew it was a good deal and I was going to live in it for a couple of years while I fixed it up. Prices were starting to move up at that time.

How did you finance this deal?

A family member helped finance the deal.

How did you add value to the deal?

My wife and I (and even some friends) did most of the labor. It was a complete renovation.

What was the outcome?

Made over $100,000!

Lessons learned? Challenges?

It was a challenge borrowing money from family. I'm not sure that I would ever do it again. In the end it all worked out!

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

We bought the house with a real estate agent. We sold it to some friends of ours so we saved the realtor fees on the sale. All we had to pay were seller's closing costs!