Every property is an investment

[Sam Schroeder]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $119,000
Cash invested: $5,000
Sale price: $145,900

Accidental investment... Bought an old "fixer upper" that I expected to live in for 2-5 years. Ended up being less than a year because of my work situation but in that time basically performed a cosmetic flip & came away with about $10,000 once the dust settled.

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

2nd home I ever owned. 1st house was new construction that I didn't love. It drove me crazy to not have projects that would add equity (without ripping out something that was already perfectly good). Once my W2 job brought me to this area I knew I wanted to buy an old fixer upper so I could have some weekend projects and hopefully come away with a profit. We didn't live there as long as I intended but it felt great to add value to an old home that needed and deserved a facelift.

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

Listed on MLS. Owner had moved out & the property was clearly in some moderate distress. Offered close to list price with a LOT of seller concessions to give me the cash to replace windows, refinish floors & paint throughout.

How did you finance this deal?

Conventional 15yr fixed.

How did you add value to the deal?

Hired a contractor to replace windows throughout.
Refinished hardwood floors myself & painted every surface.

What was the outcome?

Came away with $10,000 and essentially lived for free for 9 months. Looking back, I wish we would have rented it out as my next employer provided housing.

Lessons learned? Challenges?

Realtor fees soaked up a lot of the profit on this deal but the big regret is that I should have become a landlord and found tenants for this property.

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

Jennifer Atterson represented us when we bought and sold. She's a gem.