Laramie Live 'n' Flip

[Alexander Knowles]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $195,000
Cash invested: $20,000
Sale price: $282,500

Live 'n' Flip: Purchased as a primary residence with 10% down. Sold after two years of living in it. Minor cosmetic upgrades include exterior and interior paint, new front door, new back door, new bathroom fixtures, refinished bathroom cabinets with fresh paint and hardware, xeriscaped backyard with privacy fence and pavers. Fixed the property up over a course of two years.

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

Read Coach Carson's Retire Early with Real Estate and listening to Mindy Jensen!

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

We were renting the home for the first two months. Fortunate enough the owners offered to sell it to us first!

How did you finance this deal?

Conventional lending through a federal credit union.

How did you add value to the deal?

Major cosmetic changes only. New doors, new hardware, new paint, new landscaped yard, new fixtures,

What was the outcome?

nearly $100K in tax-free gains after selling it after living in it for two years!

Lessons learned? Challenges?

1. Make sure your spouse is on board with the renovations.
2. Great way to be best buds with your father-in-law.
3. General handyman labour is expensive (and sometimes not great quality). Next project I will have it all done in one go rather than odd single jobs.

[Alexander Knowles]

@Joe Farruggio awesome, good plan. There are a lot of lots for sale right now. Make sure you try and find something relatively protected from the wind - it's windy all the time but the few hills or trees you can build next to make a big difference!