Made plenty of mistakes! But $45,000 in profits!

[Pieter T Van Zyl]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $191,000
Cash invested: $25,000
Sale price: $275,000

Live in flip/househack! Purchased this home as a first time home buyers a year out of college. Had 1 permanent roommate and on and off interns. Always intended to rent this out as a long term buy and hold.

Made so many financial and self repair mistakes, but thanks to the market and not giving up it generated around $45,000 in cash return!

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

Bigger Pockets!

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

MLS, listed at 230k dropped to 199k and offered 190k. Settled at 191k.

How did you finance this deal?

First time home buyers and personal cash. 13k to close and down payment.

How did you add value to the deal?

I replaced kitchen counter tops, backsplash, repainted, cleaned up yard, upgraded appliances.

Professionals replaced all the floor and knocked down a wall.

What was the outcome?

Generated $45,000 in cash returns!

Lessons learned? Challenges?

Leaned so much about repairs, paint, counter tops, flooring, home buyer needs, market changes, etc.

Challenges included a insurance claim in month 1, refinance 2 months before selling (rookie mistake), having to repaint the same walls twice by choosing the wrong paint, purchase thinking it could be turned into a duplex, etc.

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

Selling agent YES!!! Helen St. Angelo
Broker YES!!! Sean Stevenson