SW Atlanta- newbie living in and renovating a single family

[Cory Pennington]

Investment Info:

Single-family residence fix & flip investment in Atlanta.

Purchase price: $188,000
Cash invested: $58,000

Currently living in and slowly renovating. Using equity ($120k appreciation according to appraisal, pulled out 40k) for further investments.

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

Had been eying the market for a couple of years for a deal, The neighborhood was increasing rapidly and I wanted to get in before it peaked. A divorce made me pull the trigger.

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

An agent found it for me, I paid asking bc the market was red hot.

How did you finance this deal?

Put 10% down and paid cash for the bulk of the renovation. Finishing the reno with cash out refi.

How did you add value to the deal?

Added a bath, made it open floor plan, completely new kitchen (cabinets, floors, appliances, island, recessed lighting and pendant light, electrical) , refinished floors, remodeled master bath, light landscaping.

There are a few things to finish before I move out and list it. One of the reasons I found BP was trying to figure out how much to spend, what to prioritize, and still have a profit. Needs one more updated bathroom and laundry plus HVAC.

What was the outcome?

Have not sold, but did buy for 188k and appraised for 300k. Unfortunately I think it needs more work to actually fetch 300.

Lessons learned? Challenges?

Don't work out of town and trust a contractor! Use more exact math instead of ballparking. Learn as much as possible about estimating repairs and renovations.

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

Yes. My real estate agent is great....Just ask.
My contractor not so much...just ask.