In the hindsight: My First deal

[Vinay Patel]

Investment Info:

Single-family residence other investment.

Purchase price: $635,000
Cash invested: $190,000

This was a live-in flip deal. I bought a cheap fixer property, fixed it up (adding significant equity), and now living in it while the property appreciates.
Bought it for $635,000. After $60,000 renovation, It appraised for $745,000 (netting about $50K profit).
I refinanced and pulled some of the equity out and now ready to make my next deal!!! (in a remote market)

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

I knew nothing about RE investing when I did this "deal". I just wanted to buy a cheap house and fix it as that seemed the best way to become a homeowner in my expensive market.

After learning about BiggerPockets, I learned that the strategy I had used is called "live-in flip".

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

MLS
No Negotiation, I had to go 1% over the asking price because the market is very competitive here :(

How did you finance this deal?

Conventional 20% down purchase loan then Cash-out Refi to pull equity out

What was the outcome?

I was able to increase the equity in my home significantly and pull cash out to purchase my next deal!

Lessons learned? Challenges?

If you are a beginner and live in an expensive market and house hacking does not work for you for any reason (i.e. don't like having roommates etc.)
then live-in flip can be a great alternative in an expensive market.

[John Lyszczyk]

Nice! Congrats on the successful deal! My brother and I are doing the same thing right now (Live-and-Flip). Currently splitting the mortgage payment and utilities between the two of us. For the first 6 months we had a third roommate, but he moved out. Your success is inspirational. Thanks for sharing!