Kirkland Live In Flip

[Nick Clayton]

Investment Info:

Condo fix & flip investment in Kirkland.

Purchase price: $204,000
Cash invested: $10,000
Sale price: $276,500

Live in flip that that I held for ~30 months. Purchased as my primary residence and rented out the spare room for $800 per month. Painted the entire interior of the condo and added some new furniture. Netted roughly $60k on this deal. 30% ROI and roughly 500% cash on cash return.

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

Wanted to build equity, not rent and pay someone else's mortgage. Was looking for an opportunity to "house hack" and earn a solid investment return while living in the condo.

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

Got my investment criteria dialed in and knew I was looking for a 2 bedroom, 1 bathroom condo for less than $225k in the Kirkland area. Got pre-approved before looking for properties. Saw the listing on the MLS and made the offer within 4 hours of the condo being listed.

How did you finance this deal?

Got an FHA loan for 3.5% down at 4.375% on a 30 year loan. Used the WSHFC down payment assistance program for help on the down payment.

How did you add value to the deal?

Painted the entire interior of the condo and added new furniture.

What was the outcome?

Sold the condo and netted roughly $60k on the deal. 30% ROI and roughly 500% cash on cash return.

Lessons learned? Challenges?

Have a defined investment criteria and pounce on an opportunity as soon as you see it. Get a loan pre-approval and defined investment plan dialed in well in advance of searching for a property. That way you can move fast once you see an opportunity. Speed is important especially in a hot market such as Seattle.

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

I would recommend Josh Parker at Keller Williams in Bothell. Kelly Collins at Chicago Title. Tom Foye at John L. Scott. Jesse Tuttle at RPM mortgage in Seattle.