Live in flip added 100k+ equity!

[Joseph Cornwell]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $147,000
Cash invested: $70,000
Sale price: $255,000

Live in flip for a new primary residence. Full gut renovation, rewired, changed the layout. New plumbing, drywall, kitchen, bathrooms, added a Master suite and master bathroom in the basement. New flooring, paint, etc. Instead of selling or refinancing this one, I am doing a HELOC for over 100k to use on addtional flips or rental property. I may sell after 2 years for no capital gains tax.

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

I had been sitting on a large amount of cash looking for a large multifamily deal with no success for 9 months, so when this deal came up I decided to make it a new primary residence to add equity and create a HELOC.

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

It came up on the MLS and needed a lot of work and cosmetic updating.

How did you finance this deal?

Conventional loan, cash for renovations.

How did you add value to the deal?

I gutted the entire home and added a ton of luxury finishes, mainly added an addtional master bedroom and master bathroom in the basement to force appreciation.

What was the outcome?

New value of over 250k, in the process of adding a HELOC now for other investments. I will live in the property for at least two years and possibly sell or rent after that.

Lessons learned? Challenges?

No major challenges, the budget and timeline went mostly as planned. I did have one employee of my construction company I own make several electrical mistakes that I had to fix personally, as a result he was let go after several costly mistakes on back to back projects.

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

I was my own agent/GC.