Juneau Alaska Renovation Loan Success

[Jeff Redmond]

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Juneau.

Purchase price: $187,000
Cash invested: $15,000

abandoned house, FHA Renovation loan thru credit union, 90% repaired in 60 days, cashed out with a heloc to buy another property, and am cashing out again now at 6 months with a refi to go play in the big city next. Working with permit department to recognize a studio apartment upgrade to the house. Appraisal today is expected to come back at $370,000.

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

House was ugly, but most systems were intact. I was moving out of a temporary mobile home, and was eager to get closer to town. Main interest: Huge upside.

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

Found on Craigslist, sat on MLS for a while. Sellers were feuding children of an estate and very difficult to work with, even through realtors.

How did you finance this deal?

Local Credit Union, FHA renovation loan including a $35k repair budget

How did you add value to the deal?

massive cosmetic repairs, crawl space, electrical, kitchen, doors/windows, attic venting and insulation. Expecting a studio apartment to finalize in the next month or two after some snags with the city.

What was the outcome?

Still living in the house, I am cashing out for a second time currently, expecting to sell around 366 days of ownership, sometime in August 2020

Lessons learned? Challenges?

I was very sloppy with my contractors and craigslist helpers. Lost an envelope of cash, paid guys to accomplish nothing or even cause damage, took on tasks that were not required for the project, then went over budget. Went over the time limit, but in the end it is a good story.

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

Ericka Lee, Awesome Realtor here in Juneau!