First Flip - Primary Residence

[Briana Bean]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $93,000
Cash invested: $10,000
Sale price: $147,500

This was a live-in flip. We stayed in it 2 years to avoid capital gains tax. After realtor, title fees, ect... We made a little over 30K to invest in future rentals.

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

We needed some extra cash to invest in real estate.

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

We found it on the HUD foreclosures list. It involved an blind auction, highest bid was the winner.

How did you finance this deal?

Standard primary residence gov't loan

How did you add value to the deal?

Rennovations

What was the outcome?

An extra 30K

Lessons learned? Challenges?

It was definitely difficult having small children in a construction zone and coming home to work everyday. In retrospect, we would have gotten more work done up front prior to move-in.