FHA 203K Renovation/Live in Flip

[Kristy Pedersen]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $110,000
Sale price: $335,000

I bought this home using an FHA 203k renovation loan. I lived in the property for 3 years and was able to sell it for profit AND not pay any taxes! I go into depth about this renovation on my blog, so I will link that here.

Visit https://kphomereno.com/203k/ for more photos!

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

Very small down payment- 3.5% down. Ability to finance renovation costs long term - I spent $110k on renovations, which I never would have been able to save up for otherwise. Low holding costs - my mortgage payment was smaller than what I would have been paying in rent.

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

I used a real estate agent who also is a developer in the neighborhood. He helped negotiate the costs down about 15k from the list price.

How did you finance this deal?

FHA 203k Loan.

How did you add value to the deal?

Complete full gut renovation - updating all the systems HVAC, plumbing, electrical and converted one bedroom into the master bath for a master bedroom.

What was the outcome?

I sold the property after living there for 3 years. The value of the house increased from my original $220k appraisal to $335k in 2 years.

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

Fifth Realty on the buy side, George Maynes from Berkshire Hathaway on the sell side.

[Dan Powers]

Hey @Kristy Pedersen I wanted to congratulate you on your successful flip and compliment you on a great rehab. As a philly native I can say you definitely got into Brewerytown at the right time and it paid off for you, that area has been steadily on the rise as money from Fairmount is pushing up. @Ryan D. Fishtown is a fantastic area where they're will be appreciation for years to come. The decision to to flip soon or hold onto for appreciation purposes is really up to you and how soon you want to make a return on your investment. Fishtown is in such demand that inventory is extremely hard to come by and when it does it gets snatched up very quickly. Honestly even holding on to the property for just another year will pay off massively instead of selling within the next couple months.