First live in flip with great returns and lessons learned

[Gabe Belloli]

Investment Info:

Single-family residence fix & flip investment in Ramona.

Purchase price: $363,000
Cash invested: $110,000
Sale price: $630,000

This was my first home purchase and was bought with the intent to do a live in flip. Most work and profit was done through sweat equity.

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

Had only small amount of cash to put down and this looked like a great deal to use FHA especially since it was a short sale

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

Through the MLS with agent. Saw it was sitting for a little bit and offered full asking knowing it had upside in the area

How did you finance this deal?

FHA and 5% down

How did you add value to the deal?

Sweat equity along with some sub-contractor help

What was the outcome?

Make a large chuck of money which was split between buying another homer to live in and then combined funds with my current partner and bought a 4 unit building

Lessons learned? Challenges?

Learned how finding the right person the first time is better than trying to get the cheapest. The challenge was I had to work a lot of extra shifts to pay for the remodel and the days I was working were additional days I could add to the back end of the project.

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

Worked with Aperture Real Estate Services for this deal and have subsequently used her for two sales, and three purchases.