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, rent would have been similar either way). With an ARV of an estimated $345,000 there is approximately $119,000 of unrealized equity at the time of the project being completed. 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.