An Accidental Live in Flip!

[Blake Schreckhise]

Investment Info:

Single-family residence fix & flip investment in Lamar.

Purchase price: $55,000
Cash invested: $250
Sale price: $78,000

My first house, and first flip.

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

I had just got licensed as a real estate agent and didn't own my house. Felt like a fraud and I needed to overcome that. Starting in a new career I didn't have a lot of money to work with.

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

My wife found it on the MLS. We actually paid full asking price for it. The seller needed to replace the siding so buyers could get a secondary market loan on it. She refused to do it for a long time then when it would sell she dropped the price from $60,000 to $55,000. We weren't waiting for this to happen just happened to be in the right place at the right time.

How did you finance this deal?

USDA-RD. Loan type for rural areas, buyers with lower income, and you can't own any other homes.

How did you add value to the deal?

We painted the exterior, and finished a few trim pieces inside. Seller had remodeled to the studs on the interior before we got there.

What was the outcome?

Sold it for $78,000 just over two years later when we needed a bigger home for our family. Didn't pay capital gains taxes since we lived there for over two years. Didn't put it on the market had a buyer in hand.

Lessons learned? Challenges?

Even your home can be a huge income maker for you. Don't underestimate the power of real estate even if you don't know the whole picture yet. Getting started opened my eyes.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Of course I represented myself so I would certainly recommend Blake Schreckhise, HA!