DIY live in flip (took longer than planned to sell)

[Nicole Holcomb]

Investment Info:

Single-family residence fix & flip investment in Carlsbad.

Purchase price: $425,000
Cash invested: $15,000
Sale price: $505,000

Cosmetic, DIY live in flip of a 1100 sq ft 2br, 2ba SFR.

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

My first two projects were condos and I wanted to move up to a SFR. This was the least expensive SFR in Carlsbad at the time.

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

This property sat on the MLS for over 90 days before I was able to negotiate the price down to $425,000.

How did you finance this deal?

Conventional Loan

How did you add value to the deal?

New hardwood flooring and paint through out, painted the kitchen cabinets, granite countertops and stainless appliances. Full bathroom reno x2 with natural stone flooring and shower enclosures.

What was the outcome?

I struggled to sell this property, showing it every day for over 60 days with only lowball offers on my $495,000 list price. I decided to take it off the market and 2 weeks later an agent came to me with an offer at $505,000. This property took longer to sell that I had originally planned but it was ok because it was our home.

Lessons learned? Challenges?

Don't buy houses close to the freeway, they are hard to sell. I grew up living right next to the freeway so I genuinely did not realize what a deterrent the freeway noise was for most people. Live in flips are low risk and you can always continue living there until the market shifts or you find the right buyer.