1st investment property, 52 Nd street single family home

[Jesus Quintanilla]

Investment Info:

Single-family residence fix & flip investment in Kentwood.

Purchase price: $50,000
Cash invested: $40,000

Five bedroom two bath house that was built in 1875. 2300 square-foot, fully remodeled, fully weatherized, new windows throughout, new siding, new flooring, new baseboard trim, new window trim, new door trim, new doors, Second bathroom fully gut and remodeled, Saved old doors and made a island out of one of them and a mudroom coat hanger out of the other one.

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

My realtor told me that the property alone was worth $30,000 and it was mostly cosmetic work. Plus it had a new furnace and electrical. I just had to put in the work to make it presentable

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

I found a deal from a family friend who bought it in a foreclosure for $23,000, 9 years prior and did not do a single thing to the house. I was the only one willing to pay $50,000 for the house. Contractors and other people did not want to pay my friend over $40,000. But I realized the income potential for a five bedroom two bath house.  Either sell or rent to college students for $400 a month plus

How did you finance this deal?

Cash from working on oil pipeline in Alaska

What was the outcome?

I am in fully for around $90,000 and the house is worth $235,000.

Lessons learned? Challenges?

My father started helping me with some drywall and some minor electrical/plumbing. Before this I have never done this type of work. It was up to me to finish the house.  I had to teach myself from YouTube videos to mud drywall, sand, primer, paint, install vanities, Baseboards, sanding and finishing hardwood floors, installed new flooring throughout 2300 sq ft house after watching 7 minute video, learn the difference between 45° and 30°, and use Goodwill and Facebook marketplace to Furnish