Our first live in Flip

[Stephen Barton]

Investment Info:

Single-family residence fix & flip investment in Indianapolis.

Purchase price: $105,000
Cash invested: $20,000
Sale price: $164,900

Contributors:
Christy Barton

This by no means was a home run but was a live in flip. However, most of the work was done during the last month of living in this home. We completely renovated the kitchen, and master bath. We did some painting and flooring in the master bedroom. All of the mechanicals were updated throughout our time living in this home.

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

We bought this house well before we really knew much about real estate investing. All we knew in the very beginning was that we got a good deal on the purchase price.

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

We found this deal the day it went onto the market. In fact, it was before I even obtained my real estate license. We searched our local BLC website Matrix and found it. I will never forget the day we went to do our initial walk through how at least two other people drove by the house wanting to see it too. We were very quick to write our offer and luckily the stars aligned for us.

How did you finance this deal?

FHA mortgage

How did you add value to the deal?

We added value by updating the roof, furnace, water heater, Central Air, and then doing a decent sized renovation on the interior. We also did a fair amount of landscaping during our time living in the home.

What was the outcome?

We made a decent profit which we then rolled that money into a down payment on our next live in flip which is at a much higher price point. We sold the house in 3 days! I attribute this to being in a great market but also doing the right finishes and pricing the home at the right price.

Lessons learned? Challenges?

If we could do it all over again. I think we would try to do the reno in the beginning rather than waiting right before we decided to sell. That was tough for us. Having all of these nice finishes in a home we had lived in for a couple of years and then we had to sell it without ever really enjoying them.

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

I ended up getting into real estate investing and eventually got my real estate license. We saved on listing agent fees plus we knew exactly what we could sell the house for.