My first house flip at 20 years old

[Matthew Bolin]

Investment Info:

Single-family residence fix & flip investment in Columbus.

Purchase price: $20,000
Cash invested: $30,000
Sale price: $84,900

The house was in need of a total remodel. It had a previous fire in the attic above the fireplace.

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

My Dad has flipped a couple houses and I saw the type of money he could make on some. So I really just wanted to make some good money.

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

My dad actually bought the house to flip himself, but had another come up that he was interested in buying that was much more expensive than this one. So he let me purchase the house from him of what he paid for it ($20,000) so he could purchase the more expensive flip house ($125,000).

How did you finance this deal?

I inherited Just over $20,000 after my grandfather passed. I received the money only weeks before investing in this flip house. I wanted to take this opportunity to invest my "free" money and turn it into more and money. I then pulled a line of credit out with the house as collateral for the renovations.

How did you add value to the deal?

Complete remodel, and added a bathroom to make the house a much more attractive 3 bed 2 bath.

What was the outcome?

Turned the $20,000 of "free" inherited money into +- $35,000

Lessons learned? Challenges?

Learned hundreds of lessons. I would say my most important lesson learned is how important location is and how much it can affect sale price.

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

Absolutely, I have an amazing real estate agent and her name is Sally Davis. I also have an outstanding banker that bends over backwards for me. His name is Jonathan Dawson over at SMB bank in Joplin, MO.