First Investment Property

[Austin Jacque]

Investment Info:

Single-family residence fix & flip investment in West Chester.

Purchase price: $240,000
Cash invested: $43,000

First investment property; current live in flip. Bought with a FHA loan, 5% down with an interest rate of 3.875. I invested a little over $31,000 in repairs (This is not including $13,560 in holding cost; I am not including them in my calculations as if I was not living their while working on it I would have had to pay a similar amount in rent for the duration of the rebuild). With an ARV of an estimated $345,000 there is approximately $119,000 of unrealized equity at the time of the project being completed. For the most part this renovation was done by myself with the intention of learning and understanding the different facets of a SFH while building an equity base to further my real estate portfolio. I am pleased with the outcome of this property and look forward to future projects.

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

I had my mind made when looking for a home that I would find something that would work as an investment as well. After a couple of dead end markets in a very hot market we found ourselves looking at this property that was less appealing at the time to the rest of the market and took a shot on it.

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

Found with the help of a realtor on the MLS. The original listing price was 250,000. We placed an offer @240,000 with an Addendum to meet 5,000 over asking if there were competing offers

How did you finance this deal?

FHA - 5% Down - @ 3.875 - 30 year term

How did you add value to the deal?

Gutted and renovated the entire property, converted unused space into laundry room. Fixed curb appeal, Along with Market appreciation.