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Updated over 4 years ago,
My first flip, Farmington Missouri
Investment Info:
Single-family residence fix & flip investment in Farmington.
Purchase price: $35,000
Cash invested: $120,000
Full remodel on a old Victorian style home. took months longer than expected, took far more money than budgeted, and I am incredibly thankful that i did it. After we were done it sat on the market for a while so we rented it out to a family that is supposed to be purchasing it in the coming weeks now that they have lived in ti for a little over a year. So we will see how that goes.
What made you interested in investing in this type of deal?
I was very eager to finally do my first deal and I already was a GC in my area so I decided to go with a flip.
How did you find this deal and how did you negotiate it?
My wife as a hairstylist actually has a large network of customers that she speaks to about how we wanted to get into real estate investing and one of them told us about this property and i immediately went to it and got in touch with the seller and got it under contract.
How did you finance this deal?
We secured a HELOC on our personal house for the down payment and remodel, then a conventional loan for the purchase price. We went over our budget in the middle of the project so we had to go back to the bank and refinance some of the money we had on our HELOC back into the mortgage of the property. As the tenant moved into the property we refinanced a portion of the HELOC into the mortgage for a second time. so i guess we BRRRRRR'd it. Bought it, Reno, Refi, Reno, Rented, Refi, repeat.
How did you add value to the deal?
Forced appreciation by completely redoing everything in the house. much of the house was stripped to the studs to redo all of the electric, plumbing insulation, layout, walls, ceiling. It was a long process for my first flip and i probably wont do that much work to a flip again.
What was the outcome?
It currently sits rented out by a tenant that is supposedly going to be purchasing it within the next month of writing this.