Updated almost 6 years ago on . Most recent reply
My first fix and flip
Investment Info:
Single-family residence fix & flip investment in Greeley.
Purchase price: $230,000
Cash invested: $15,800
Purchased a SFH that was previously a rental and in need of cosmetic fixes through-out the home. It was in a good neighborhood and had a 2nd garage, additional parking and a double lot, unlike most its neighbors.
What made you interested in investing in this type of deal?
The housing market is very expensive in Colorado. I was moving from a depressed market in WY and this allowed me to get more house, plus make a nice profit. My realtor was a big part of it.
How did you find this deal and how did you negotiate it?
I met a realtor when I moved to the Greeley area who managed 80+ rentals and knew this one was going to be liquidated. It's who you know!
How did you finance this deal?
Traditional loan. This was my primary residence for just over 2 years to miss all capital gain taxes.
How did you add value to the deal?
A large remodel on the kitchen was performed. It was very outdated. I added a large granite island, new flooring appliances, etc. I updated the flooring through out the house, painted and updated all fixtures in the bathrooms.
What was the outcome?
Purchased for $230k. Sold for $310. Input $15,800 into rehab. After realtor fees and any other expenses I net profit $51,800 on my first fix and flip. I rolled that into my next investment flip.
Lessons learned? Challenges?
Laminate flooring does not hold up and is not worth it. I will not install that again.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Seth Bunting at One-Way Realty in Greeley, CO. He is amazing!